What is a Short Sale?
Short Sale: when bank agrees to accept less than what home is CURRENTLY valued at.
Home values in the town of Hamden as well as New Haven County have dropped drastically over the past few years. Short Sales are becoming increasingly common in the area because of the benefits in contrast to a foreclosure or deed-in-lieu. In the case of a Short Sale, banks allow a house to sell for less than the outstanding liabilities.
It is not uncommon for REALTORS® in attempt to please sellers and to circumvent conventional wisdom to list home for more than it's value. The problem now is with: 1. Hoping it sells; 2. the APPRAISAL (which will reiterate CURRENT property value). The wiser decision would be to look at the dynamics of the seller's situation and determine if property is or could be a short sale canidate.
To qualify for a Short Sale, you must pass a HARDSHIP TEST.
* Have you lost your job since home purchase?
* Has your interest rate increased and now hardship prevents mortgage payments?
* Have you incurred any large medical bills?
* Have you had any illnesses, injury or bad accident that prevents you from working?
* Was there a death of a spouse?
When lenders investigate the hardship of a seller, they will look for and identify any assets held in other real estate (including equity), CD's, bonds, and stock. In addition, they will look into whether home was aquired by fradulent measures; whether it was a misstatement on the loan application regarding employment, wages, or other assets.
Shortsales whether in Hamden, New Haven County, Connecticut or any other city, county, or state are very detailed and intricate transactions with much required documentation from sellers. In certain cases, the lender will be willing to take a loss, but not just for the sake of seller attempting to save credit score or history.
This is Part 1 on a Series of Short Sale information for Hamden and New Haven County. For questions, email firstname.lastname@example.org or call 203-654-6966.
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