Many sellers in today's market have little or no equity; that is, the seller owes close to or more than the property is worth. In these situations, lenders are often willing to accept less than the full amount due, commonly referred to as a "short sale". Many homeowners who are "upside down" on their mortgage opt to simply walk away from their home and allow it to foreclose. The short sale offers a much better option and provides a win-win for the lender and the homeowner.
Oftentimes a lender will prefer a short sale to a foreclosure. From the lender's perspective, a short sale saves many of the high costs associated with the foreclosure process--attorney fee's, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets their money faster and is able to cut their losses.
Short sales can be faster and less expensive for lenders, but it may not be something they offer to a homeowner that falls behind on their payments. That is where we may be able to help. With your permission, we can contact your lender and attempt to negotiate a sale for less than you owe on your house and you have no out-of-pocket expenses, including real estate fees, at closing. You sell your house, avoid foreclosure and pay nothing for the service. And typically, short sales do not have the negative impact on your credit that a foreclosure has.
The bottom line is...If your home is worth less than you owe, you can still sell it via a short sale--without bringing any money to closing! PLEASE CONTACT US if you would like to arrange an appointment to discuss this possibility in more detail. We might be able to help!
LINDA YODER And RICK GARDNER
Short Sale Specialists