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What is a Short Sale?…and Other FAQs

What is a short sale? That’s one of the questions most asked in real estate today. You’ll find additional information for BUYERS or SELLERS on our specific pages. However, if you’re seeking general knowledge, the list below will help get you started.

What is a Short Sale?

A bank short sale is a method for selling a property when the lender takes less than the loan amount owed and the mortgage lien is then released on the property at closing.

Why Would a Bank Short Sale a Home?

Foreclosures, and the upkeep of a property, are lengthy and expensive propositions. Banks realize that selling for a discounted price, rather than doing a foreclosure, can save them a significant amount of money.

Where Can I Find Advice on How to Short Sale a Home?

You’ll find helpful information on the process right here based on whether you’re a BUYER or a SELLER, but in the end, having an experienced realtor working for you is critical to the success of a short sale.

When Should I Start a Short Sale?

Preferably as soon as you realize your mortgage is unaffordable and you know what you owe is far greater than what you can sell it for on the market.

How Do Foreclosures and Short Sales Affect My Credit?

A foreclosure shows on your credit report for approximately 7 years as a ‘debt not paid.’ By comparison, a short sale will come up as a ‘debt paid’ or ‘debt settled for less than what was owed,’ with the effects lasting 2-3 years. The hit your credit score takes can also differ, with foreclosure being far worse.

My House Has More Than One Mortgage - Can I Still Do a Short Sale?

Absolutely, regardless of the number of liens you might have.

Do I Need a REALTOR® to Do a Short Sale?

It’s not required, but it is highly recommended. There are many aspects of the process that require a lot of time, follow up and resources to be successful. Call Stephen for a free, confidential, no obligation consultation.