Hi Garry! A short sale is when the lender(s) agree to take less for the house than what is actually owed. This can only happen if the homeowner can show a hardship (i.e. sickness, death, inheritance, moving more than 50 miles, change in income). They have to show with a lot of documentation. If there is $1 in proceeds, the seller does not get that $1. It all goes to the lender(s). The lender pays for fees such as commissions, transfer taxes, etc. Hope this helps.
If a homeowner owes more on their mortgage than the fair market value of their home, their mortgage lender may agree to a "short sale". That means the mortgage lender will accept less than what is owed on the mortgage to release the lien so a clear title can be transferred to a new owner. The mortgage lender must agree to the final sales price and terms of the sales agreement. In some cases, the mortgage lender may not release the borrower from the responsibility to re-pay all or some of the remaining debt. The borrower may also incur some tax ramifications as the result of a "short sale". It is always best to work with a Realtor experienced in short sales and to begin open communication with one's mortgage lender before the property is listed to make sure they are on board and will agree to a short sale.
Hi, Basically a short sale is when a home sell's for less than is owed to the lender. The lender must agree. It is recommended that you speak to a credit counselor to determine potential impacts to the sellers credit.
It is where the consumer is asking the bank to take less than what they owe. The consumer has to provide lots of information to the bank to support their claim. If they fell on hardship. They also have to provide tax returns and get approval. It can take time to get this going. It is not easy. I hope that answers your question. Thank you.
A short sale starts when the home owner is no longer able to pay their note and the bank is ready to start foreclosure or has started foreclosure proceedings.When the recession started it was very common for borrowers to owe more than the home was worth. In some cases the lender will take less than balance remaining on the note in lieu of foreclosure.In some states the borrower may need to pay income tax on the difference in value between the price the bank accepted and the total amount owed. Short sale are often preferable to foreclosures, they are less damaging to your credit both short sale or foreclosure result in loss of the home .
It is the sale of a house for which the owner owes more to the bank (usually in the form of a mortgage) than the property is worth, in its current condition. The owner is asking the lender (bank, etc.) to accept an amount of money that is 'short' (less than) of what is owed the bank in order to satisfy the lien.
A short sale may be a bit more like a long sale. It means that the owner of the property has not gone through the foreclosure process but they are behind in their payments to the lender, and the lender has proceeded with the foreclosure process. Since the value of the property is usually less than what is owed on the property, the owner can offer for sale and accept a contract on the property subject to the lender agreeing to the terms. Where it may take some time and patience is when the negotiations begin with the owner or buyer and the lender or lenders. It gets complicated when there are two lenders ( they got a home improvement loan, or a second mortgage). Taxes and the primary or first mortgage gets paid off first, but if there is a second lien or mortgage, that is the one that will have to be negotiated the most as they will have to sign off, but will possibly loose the most, or maybe not get paid off at all. A short lesson on a short sale.
A short sale is not what you may think. Usually, it's a long process to help the owners pay down their mortgage or sell the house to make up the "shortage" of money they may owe their lender. The bank determines the amount needed in a particular time frame. For the new buyer, patience is key, and additional fees may need to be paid and additional paperwork may be required so you can purchase the house and make it your own.
Short Sale is when the seller owes more on the property than current market value. The bank must agree to accept current market value on the property. Sometimes, they will ask the seller to make a cash contribution to the sale or the bank may refuse to allow the seller to do a short sale. A lot depends on the sellers current financial picture. The seller will be required to provide extensive documentation of their finances for the past 2 years to prove their financial need. If you are considering doing a short sale, find an agent with extensive experience and education in getting them done. If you are considering purchasing a home that is offered as a short sale, be prepared to wait for at least 3 months to get an answer from the bank. It may go faster as a lot of banks now have a better system in place for handling them, but don't count on it. And go in know, that you may wait 3 month and the answer could be a 'no'. The bank may not allow the sale. That's one of the reason you want a realtor who knows what they are doing and has screened the seller thoroughly. I've done so many, I can pretty much predict what a bank is going to do once I have the sellers financial information. If my seller has other assets, I tell them to be prepared to come to the closing table with money or don't even get started with the process as the banks aren't going to let them walk away without a contribution.
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Hi Garry! A short sale is when the lender(s) agree to take less for the house than what is actually owed. This can only happen if the homeowner can show a hardship (i.e. sickness, death, inheritance, moving more than 50 miles, change in income). They have to show with a lot of documentation. If there is $1 in proceeds, the seller does not get that $1. It all goes to the lender(s). The lender pays for fees such as commissions, transfer taxes, etc. Hope this helps.
If a homeowner owes more on their mortgage than the fair market value of their home, their mortgage lender may agree to a "short sale". That means the mortgage lender will accept less than what is owed on the mortgage to release the lien so a clear title can be transferred to a new owner. The mortgage lender must agree to the final sales price and terms of the sales agreement. In some cases, the mortgage lender may not release the borrower from the responsibility to re-pay all or some of the remaining debt. The borrower may also incur some tax ramifications as the result of a "short sale". It is always best to work with a Realtor experienced in short sales and to begin open communication with one's mortgage lender before the property is listed to make sure they are on board and will agree to a short sale.
Hi, Basically a short sale is when a home sell's for less than is owed to the lender. The lender must agree. It is recommended that you speak to a credit counselor to determine potential impacts to the sellers credit.
It is where the consumer is asking the bank to take less than what they owe. The consumer has to provide lots of information to the bank to support their claim. If they fell on hardship. They also have to provide tax returns and get approval. It can take time to get this going. It is not easy. I hope that answers your question. Thank you.
A short sale starts when the home owner is no longer able to pay their note and the bank is ready to start foreclosure or has started foreclosure proceedings.When the recession started it was very common for borrowers to owe more than the home was worth. In some cases the lender will take less than balance remaining on the note in lieu of foreclosure.In some states the borrower may need to pay income tax on the difference in value between the price the bank accepted and the total amount owed. Short sale are often preferable to foreclosures, they are less damaging to your credit both short sale or foreclosure result in loss of the home .
It is the sale of a house for which the owner owes more to the bank (usually in the form of a mortgage) than the property is worth, in its current condition. The owner is asking the lender (bank, etc.) to accept an amount of money that is 'short' (less than) of what is owed the bank in order to satisfy the lien.
A short sale may be a bit more like a long sale. It means that the owner of the property has not gone through the foreclosure process but they are behind in their payments to the lender, and the lender has proceeded with the foreclosure process. Since the value of the property is usually less than what is owed on the property, the owner can offer for sale and accept a contract on the property subject to the lender agreeing to the terms. Where it may take some time and patience is when the negotiations begin with the owner or buyer and the lender or lenders. It gets complicated when there are two lenders ( they got a home improvement loan, or a second mortgage). Taxes and the primary or first mortgage gets paid off first, but if there is a second lien or mortgage, that is the one that will have to be negotiated the most as they will have to sign off, but will possibly loose the most, or maybe not get paid off at all. A short lesson on a short sale.
A short sale is not what you may think. Usually, it's a long process to help the owners pay down their mortgage or sell the house to make up the "shortage" of money they may owe their lender. The bank determines the amount needed in a particular time frame. For the new buyer, patience is key, and additional fees may need to be paid and additional paperwork may be required so you can purchase the house and make it your own.
Short Sale is when the seller owes more on the property than current market value. The bank must agree to accept current market value on the property. Sometimes, they will ask the seller to make a cash contribution to the sale or the bank may refuse to allow the seller to do a short sale. A lot depends on the sellers current financial picture. The seller will be required to provide extensive documentation of their finances for the past 2 years to prove their financial need. If you are considering doing a short sale, find an agent with extensive experience and education in getting them done. If you are considering purchasing a home that is offered as a short sale, be prepared to wait for at least 3 months to get an answer from the bank. It may go faster as a lot of banks now have a better system in place for handling them, but don't count on it. And go in know, that you may wait 3 month and the answer could be a 'no'. The bank may not allow the sale. That's one of the reason you want a realtor who knows what they are doing and has screened the seller thoroughly. I've done so many, I can pretty much predict what a bank is going to do once I have the sellers financial information. If my seller has other assets, I tell them to be prepared to come to the closing table with money or don't even get started with the process as the banks aren't going to let them walk away without a contribution.