What IS a Short Sale?

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Real Estate Agent with Remax Excellence - Silver Spring, MD Maryland #318884

EMA Real Estate GroupA short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions.

But to be technical, here's a more official definition:

  • A homeowner is 'short' when the amount owed on their property is higher than current market value.

  • A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

  • Financial Hardship – There is a situation causing you to have trouble affording your mortgage.

  • Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

  • Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.

As a Certified Distress Property Expert (CDPE) agent, I help distressed homeowners to work through every aspect of the denial and discouragement that accompanies a mortgage which is no longer manageable, and in the process, to move toward financial solvency. Let me help you to make a fresh start. If you or someone you care about is ready to tip the scales back toward financial solvency, contact me today and let’s get started.

Emcee Arah - "the REALTOR with Architectural Dimension" – is both a Certified Distress Property Expert (CDPE) and a Certified Investor Agent Specialist (CIAS). He is uniquely equipped to assist you in navigating today's residential real estate market. Contact us onlineor by phone at (301) 452-5252. And don't forget to leave your comments onour Facebook page– we'd love to hear from you!

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