True Definition of Short Sales
There are so many questions about the Short Sale especially in today's Real Estate Market.
So here is a True Definition of Short Sales from A Licensed Loan Officer and added content from a Licensed Real Estate Agent.
A Short Sale is 19 times out of 20 the result of a Home Owner deciding they are paying too much for their current Mortgage, due to a multiple of reasons: Financial Hardship, Decline of character in the neighborhood, job loss or relocation, or simply in agony by watching investors and new home owners alike buying properties right next to them for half to a third of what they originally paid.
Either way its a situation that is unfortunately plaguing many Americans and many still unaware of the best action to take.
I will say there is nothing wrong with feeling this way, Its not a good feeling knowing you got screwed, even though it was in fact us that signed on the dotted line, it does not change the fact that Life Happens and things change, sometimes drastically,
With that being said, The First thing I advise you do If considering a Short Sale is:
- Try to Rent your Home First for what the Mortgage is: Although Unfortunately in most cases people are unable to do this, but at least explore the option before you count it out, because sometimes it can be done, to save yourself the potential Credit damage, and inability to purchase right after the Short Sale Transaction has been Closed.
- Contact a Short Sale Educated Real Estate Agent to See what your Home is REALLY worth: In many cases Home Owners are way off in their estimations of their Home Value, Mostly caused by lack of resources so the only way they can heck are things like Zillow's "Zestimate" which is Basically asking Squirrels How much Nuts are worth, Zillow means well, although not something your going to want to base numbers on, also when its "Your Home" is much harder to look at your dwelling, place of comfort, something you personally put effort into to be the way you want just be walked through and offered half of what you know it meant to you.
- Have Your Realtor List your Home and Get an Offer on it:Now you have the Ball rolling-It is then a matter of Negotiation & Logistics as to how long it will take, but all Banks will typically have a BPO (Broker Price Opinion) completed within 30-40 days of receiving the contract by the New People looking to Purchase your Home
- Short Sale Approval is Granted by Your Lender/Lienholder(The Financial Institution of whom you pay your Mortgage to) Granted this is easier said then done, but Provided you have a Realtor that is Well Educated in Short Sales you will have no problem achieving this, at this point, your transaction is in the hands of the Loan Officer that represent the End Buyer: Person(s) Purchasing your Home you are Short Selling.
- The Mortgage Company Representing the New Buyers Close on the Loan and You are Relieved: At this Point the Loan for the New Buyers in "Funded & Recorded" and they get the Keys and move in, At this Point you are relieved of this debt, and depending on if you missed payments or not, Free to Purchase again. Although there are many possible outcomes, so the best way for clarification is to Call me if you have detailed questions on Purchase After a Short Sale, Because it CAN be done, You just have to go about it Properly.
I hope this helps those that are in need of knowledge regarding Short Sales, Always know, If you are in need of additional explanation on this or similar subjects never hesitate to call, I am Travis Wichmann with Amerifirst Financial and I am Available 7 days a week.
Aside from Real Estate: Let us All be aware of the World and what is happening, Click below to help Japan, even if you do not choose to donate anything, at least educate yourself of what is going on and try to put yourself in their shoes. Thank you in advance for any positive support you can give.
It not what you can get, Its what you can GIVE