A short sale is when a homeowner sells their home for less than the balance they owe on their loan. A short sale is something that was relatively unknown prior to the real estate bubble bursting in 2008 but has become a common alternative to foreclosure since then. The homeowners lender must agree to permit a short sale and subsequently approve the price and terms the home is being sold for, however most lenders today have systems in place to work with borrowers needing to do a short sale.
Homeowners that are "underwater" or in a "negative-equity" position, meaning they owe more on their home than it is currently worth and are in a position where they need to sell their home are good candidates for a short sale. Since the homeowner's lender is going to be asked to permit the home to be resold without receiving payment in full on the existing mortgage, the borrower will need to prove to the lender that the financial resources necessary to pay the shortfall is not available. and that a financial hardship exists.
The first step would be to determine what the home is worth in the current market and what expenses would be involved in preparing the home for market and selling it to see, if in fact, the owner is underwater and, if so, to what extent. This is where we come in and can help you. At MORE, REALTORS®, our brokers and agents have helped homeowners with millions of dollars of short sales and have the experience and knowledge to help guide you every step of the way with care and professionalism at every step. We know this is an emotional and stressful time for homeowners and we do everything in our power to make the best of a bad situation for them.
We would love to have the opportunity to help you. For a private, free consultation, please call us at 314.332.1010, use our live chat in the bottom right corner to chat with us or click the button below to contact us.