So What is a “Short Sale” anyway?
Tuesday, December 4th, 2007I have been getting this question quite a bit lately and so thought this would be an excellent topic for discussion!
WHAT IS A SHORT SALE?
A short sale is the sale of a property for less that what is owed on it. A typical scenario might be a home that was purchased for $260,000 in 2005 that would now sell for $230,000. The mortgage owed is $258,000. The goal is to get an offer at the current market price and convince the bank to take less than what is owed to them to go ahead and get rid of the property before having to forclose on it.
You are a candidate for a short sale if:
- You are behind on payments or getting ready to be behind
- You owe more to the bank than what your home is worth
- You have had a considerable life change that is going to affect how you can make your payments on time in the future.
Do not wait to sell your home if you have been put in a situation where you cannot make your payments! the more you delay the worse the situation will get and the harder it will be to get your home sold in time.
In addition to selling homes I also provide counseling on how to keep your home and what your best situation might be. Please don’t be afraid to call me today to discuss your situation.
**There can be tax and legal implications regarding short sales and forclosures. I cannot give legal or accounting advice**