Why would my lender allow me to sell my home short?
It costs a lender $58,000 on average to foreclose on a home. The bank will attempt to sell the home at auction which is not always successful. If the home doesn’t sell, the property must go through the bank REO process, which can be lengthy. Because of this, many banks are now stuck with vacant properties that have been foreclosed on, each of which is only deteriorating with time. It is for these reasons that it is much easier for a bank to allow you to sell your home short, forgive you of the deficiency, and count their losses.
Can I get any money back from a short sale?
Typically the homeowner does not receive any funds at closing from the sale of their home when performing a short sale. Recently as part of the Making Home Affordable Plan, and specifically the new Home Affordable Foreclosure Alternatives (HAFA) Program, qualified home owners can get $3,000 BACK from a short sale (depending on your lender) to use towards relocation expenses!
How can a Realtor® help me?
A Realtor will help you by listing and aggressively marketing your property. In addition to this, a Realtor will work with your lender to get a lower payoff amount approved, allowing you to price your home below the competition.