What Is A Short Sale?
What exactly is a short sale?
This is a very common question in the Real Estate business and it has a very simple answer. A short sale is when you have to sell your home for less than you actually owe. Furthermore, contrary to what the name implies, a short sale has nothing to do with the length of time of the sale. In fact, a short sale transaction can take up to a few months from start to finish. I’ve actually seen short sales that took 12 and 18 months to finalize! The average time for a short sale in our current market, is around three to six months.
So how does a short sale work? Well, let’s say that you’ve owned your home for a period of time and it’s currently worth $300,000 while you still owe $400,000 on the mortgage. Next, let’s pretend that you’ve come into some sort of hardship and you need to sell your home, despite owing $100,000 more than the home is worth. A hardship is defined as a situation beyond your control that makes it difficult, or even impossible to continue making mortgage payments. Some scenarios that qualify as a hardship include, health and medical issues, relocation because of your job, or even a loss of a job. Basically, you’re stuck between a rock and a hard place and you need some help.
So what do you do now? Well, for starters, I always recommend that you contact a Real Estate attorney and a CPA. Next, you need to contact a professional like myself or any of the experienced Brokers here at the Matin Real Estate Group. We’ve got the know how as well as the partnerships to help guide you through the process. For years we’ve worked with Northwest Home Savers to help people navigate their short sale and walk away from the situation without owing a single dime. Now, I think it goes without saying that there a number of rules and regulations concerning short sales and you’re looking at a mountain of paperwork before it’s all said and done, but we can help.
So if you find yourself in this situation, or if you know anybody that’s up against a short sale, please reach out to us. We can help you through this tricky situation!
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