What is a Short Sale?

Real Estate Agent with ReMAX Realty Professionals - Marker Miller Team

What is a short sale?

A short sale is the sale of a piece of real estate for less than what you actually owe on it.  In turn, the lender is agreeing to accept payoff on their loan for less than what is owed them.  They also pick up the seller’s side of the closing costs so you aren’t expected to bring money to closing in a short sale, which is a key factor for many.

So how do you qualify for a short sale?  First, you have to be underwater on your property.  In other words, you owe more money than it is worth in the current market or you can’t keep up with the payments and are behind on what you owe the bank.  Second, it helps to have some sort of hardship.

A financial hardship for purposes of a short sale can be defined in a number of ways.   Either there is a reason you can’t pay the bank (divorce, job loss, catastrophic medical issues, etc.) or you are leaving the state for a job transfer.

So what are the advantages of a short sale over a foreclosure or just opting to turn over the keys to the bank?
A short sale has several advantages over a foreclosure or just walking away.  A big advantage is that there is less damage done to your credit.  A short sale will reduce your credit score, but generally the damage to your credit score won’t be as great as with a foreclosure or with just walking away.  Typically a foreclosure can affect your credit  score anywhere from 250-300 points.  For a short sale it is typically around 50 points.

A foreclosure on your record can affect your future employment.  Employers consider this in their  hiring and it can be enough for them to decide not  to hire you.  Not only that, but it will also affect your ability to get a security clearance, which has become a necessity in many jobs that are available today.

You can’t short sale without approval from the bank and our job is to work with you and the bank to make it happen.   We have the experience to put the package together for you, negotiate the transaction with the bank,  and if you qualify for the short sale process we can get your home sold and put you on the right track.  Call or text us today at 812-360-3863 or email us at homes@MarkerMillerTeam.com.  If you are in Bloomington, Ellettsville, Monroe County and the surrounding area, there is no reason for you to have to suffer thru and from the process.

What is a short sale?  Contact us to learn more about Monroe County Short Sales.

Comments (2)

Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Really appreciated your clear description of what actually is involved...this is not a feature in my area.

Jan 09, 2012 04:56 AM
Goran Utvic
Goran Utvic Real Estate Broker/Construction Consultant - Chicago, IL
Chicago 2 Flat Specialist

Lesa - great post. Homeowners that owe more than what there home is worth and cannot pay their mortgage should consider a short sale as a far better alternative to foreclosure.

Jan 17, 2012 09:32 AM