Westchase Short Sales

Recent economic downturns and a slowly recovering housing market have left millions of homeowners “underwater” in their homes. The term refers to a homeowner who owes more than the home is currently worth, often times leading to a foreclosure. A short sale can be an excellent solution for underwater borrowers who need to sell their home.

Previously it had been difficult to short sell a home, but due to significant changes in the market and economy as a whole, banks and lenders are much more willing to negotiate these transactions.

Generally speaking, a short sale occurs when the amount owed on the property is greater than the home’s current market value. The homeowner and the lender negotiate to sell the home for less than the full amount, if a buyer closes on the property the home is then “sold short” of the total value.

To qualify for a short sale, the homeowner must have experienced at least one of the following: financial hardship, monthly income shortfall, or insolvency. Any of which must be proven and physically documented.

The foreclosure crisis peaked several years ago and now lenders are more willing to process a short sale instead of a foreclosure as both parties can benefit from the short sale. The lender receives a large majority of their money, and the borrower is able to get out of a bad situation. Overall, there are fewer costs and liabilities depending on your particular scenario.

Foreclosures tend to turn banks and lenders into real estate agents, and there’s no guarantee how much of their money they will get back. There is more risk involved in a foreclosure and the borrower has a 7 year foreclosure “black mark” on their credit score.

If you have been served a foreclosure notice and are curious about the short sale process or think you would benefit from a short sale, contact short sale realtor Vicki Boss. A consultation will set you up with a competent real estate attorney to give you legal advice on the best route to take.