Homeowners sometimes can’t afford to make their mortgage payments, but they can’t get out from under their home easily because they owe more than the home is worth. One option that might work in these cases is to sell the home as a short sale.
A short sale occurs when the lender agrees to allow the home to be sold for less than the balance on the mortgage. This is often a preferable option for the mortgage company when they consider the alternative of having to go through the foreclosure process and then try to sell the property again. It benefits the homeowner by taking away the stress of the mortgage payments, and buyers can typically get a good deal on the property.
What are important points to remember in a short sale?
The short sale process is often lengthy because the mortgage company may not be in a hurry to approve the sale; however, swift action might be required once the sale is approved. Typically, lenders will require proof of the homeowner’s hardship before they entertain the idea of a short sale.
These homes are usually sold as-is so the purchaser will have to be sure they can financially handle any repairs or work that will have to be done. There are often very specific disclosures that will be placed on listings that are for this type of sale.
Individuals on both sides of a short sale must ensure they understand their rights and responsibilities. Working with an individual who’s familiar with these matters may be beneficial.
