Jan McNulty

Broker, CDPE, SFR, CRS

What is a Short Sale?



What is a Short Sale? Can anyone Qualify?

Not everyone qualifies for a Short Sale, even though they maybe "upside" on their house values, in other words, they owe more than the market will bear to sell the house. For example, the house purchased for $200,000 in the Northwest suburban market in 2006 (the highest values recorded), may find that to sell that home they would be fortunate to get $175000 today in 2009. There have been some estimates that the market has declined 10% a year in general.

Today, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

The first 3 questions to determine if you qualify are fairly simple, they are;

      • Do your expenses exceed your income? A lender will want to see that you can not afford or soon will not be able to afford your monthly mortgage payment.
      • Is there a hardship that caused your situation? There is a situation that caused the hardship ie loss of job, health concerns, divorce, death of a family member or spouse are some examples.
      • Is the likely sales price of your home less than what you owe and the expenses of selling and you do not have the liquid assets to pay the difference.  

There obviously are more questions to go with each of these but basically that is what determines if you qualify.  Because so many people had no clue of how to proceed with a short sale there are a lot of myths flying around that just confuse the home seller more than ever.

Contact me for more info and a quick interview  - let?s see what we can do to relieve some of your stress. To Successfully sell your home as a short sale it must be listed with an agent.

I am a Certified Distressed Property Expert - and have received special training to assist you in the sale or purchase of a short sale home.  Let me help you!

 

Here are some useful links:

Useful Links

Mortgage Modification Resources

The Home Affordable Refinance Program
www.MakingHomeAffordable.gov

HOPE NOW
www.HopeNow.com

Fannie Mae Loan Lookup
http://loanlookup.fanniemae.com/loanlookup/

Freddie Mac Loan Lookup
https://ww3.freddiemac.com/corporate