[tagline_box link=”” title=”Short Sale” description=”A short sale is when a home owner sales their property and the proceeds from the sale will be less than what is owed on the mortgage currently on the property. The home owner can not make up the difference in what they owe on the property, and the lender agrees to accept this less amount and release their lein on the property.”][/tagline_box]
For example:
Homewoner A owes $100,000 on their current mortgage. Their home is not worth at least $100,000 in the current market. The lender who has the loan on the property allows the home owner to sell the property for $75,000. There is a shortage of $25,000. The lender agrees to accept this loss and release their lien on the property.
What You Need To Know:
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- Home owners considering short sales must qualify for a short sale based on their lender’s criteria.
- The short sale process can take several months to complete.
- If the property has more than one loan, both lenders will have to approve the short sale
- Before the lender will agree to the short sale, they will do their own appraisal to determine the current value of the property.
- The home owner must
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