What is a Short Sale?

Real Estate Agent with Direct Realty

A short sale can be a seller's best option for Minnesota residents.

A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers' mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner's commission. The seller is unwilling or unable to cover the difference.

Some - although by no means all - short sellers may also be in default on their mortgage loans and be headed for foreclosure. However, home owners who bought at the top of the market or who took out large amounts of equity with a refinance and who now need to sell because of divorce or job transfer may also find themselves upside down, owing more than the home is currently worth when closing costs are factored in.

Losing your home can be very emotional and most people don't want to face up to the reality until foreclosure sets in.

Other sellers simply don't understand that if they have assets, such as stocks or a high-salaried job, a lender is not going to let them just walk away from a short sale without signing a note to repay what they owe. However, by involving a professional negotiator to handle the bank negotiations often times they can obtain reductions and total releases of second mortgages and junior lien positions against the house. These sign releases will reduce the seller's financial liabilities to bad debt after the sale of the house.

The author Jay Johnson is the owner / broker of Direct Realty. Direct Realty located in Minneapolis, Minnesota specializes in home listing and selling of short sale properties for sellers. His professional negotiators work on the seller's behalf against the banks to reduce the seller's financial liabilities. For questions and help selling homes on a short sale basis call Jay Johnson at 612 -965 -0937 or visit his web site at www.ForeclosureFirstCallForHelp.com for more information.

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