Short Sales, buckle your seat belts, you are in for a ride

After speaking with my client and consoling her on the potential loss of her home, we started to look at her options. It was at this time I thought that maybe I should start spreading the word about what happens in short sale transactions.
Simply put a short sale is a sale in which the seller owes more on their house than it will sell for. In this case the mortgage lender agrees to take less than what they are owed instead of taking the property back in foreclosure or any of the other options a lender exercises in order to rectify a defaulted mortgage.

That is the simple story. That story does not tell of the heartache, the red tape and the mind blowing amount of paperwork and phone calls it takes to get such a transaction to close.

Now this is not to say that short sale can’t be done or that it shouldn’t be done but it is best to know what you are up against before embarking on this journey. Prepare for the worst but hope for the best. It’s a cliché because it’s true!

Short Sales

Yesterday I received a call from one of my past clients. She just lost her job and she is having a hard time making ends meet. She said that she would like to see about selling her house but she is worried that she won't get enough money from the sale to pay off her mortgage. She asked me if I have ever heard of something called a "short sale" Ha ha. Heard of it? I feel that I can call my self an expert at it!