A short sale situation occurs when a homeowner’s mortgage is more than the property will sell for in the current market and the seller does not have the ability to pay the difference For example, a homeowner purchased the home using 100% financing in 2007 for $300,000, but if he were to sell it today it would only sell for $150,000 As a result, if he sold today he would have a $150,000+ deficiency The “+” is because you’ll need to include negotiated fees, repairs, agent commissions, seller closing costs, utility/tax/HOA liens, discounted payoff of second mortgage, etc In a short sale situation, the homeowner requests that the lender(s) accept a discounted payoff of the mortgage(s) In the example above, the first mortgage amount is around $240,000 If the purchase price is $150,000, then the first mortgage lender must “lower the loan amount” (aka discounted payoff) enough so the sales price covers the seller’s negotiated fees, repairs, agent commissions, seller closing costs, utility/tax/HOA liens, discounted payoff of second mortgage, etc The lenders are not required to accept discounted payoff, but currently the government is providing incentives for lenders to approve short sale transactions.
Short sale is a good solution for someone that wants to sell their property versus dealing with the negative repercussions associated with going through foreclosure.
CDPE designees have knowledge, resources and experience average Realtors do not have that helps homeowners maximize their chances for short sale lender approval.
If you’d like to know if you qualify for a short sale, you may call Cy Marlow at 1-812-234-8808 FREE to set up a confidential meeting to discuss your situation or you can submit a free and confidential online prequalification form.