What is a Short Sale?
It seems that everyone is talking about short sales these days. But, what is a short sale? Simply put, a short sale allows you to sell your home for less than what you owe. It is an agreement between you and your lender that the home can be sold without the entire balance of the loan being repaid at the time of sale. The devil, of course, is in the details. A full waiver and release from the entire debt is the real goal of a short sale negotiation.
Each short sale must be negotiated to obtain the best and most favorable terms for that particular short sale seller. Short sales are better for a person’s credit than a foreclosure and they allow the lender to obtain a higher recovery for the asset without the additional expense of a foreclosure. However, there are many factors that can affect a short sale including the type of loan, the investor involved, the existence of mortgage insurance on the loan, the presence of additional liens, and the relative skill and experience of your short sale agent.
Before deciding whether to short sell your home, it is essential that you obtain legal and tax advice, and consult with an experienced short sale agent. If you are considering a short sale of your Santa Maria, Orcutt, or Nipomo home and would like a short sale consultation, please call my office to schedule a meeting or a private telephone consultation at (805) 938-9950.
Tni LeBlanc is an independent Real Estate Broker, Attorney, and Short Sale Agent. She is a Certified Distressed Property Expert (CDPE) and Certified HAFA Specialist (CHS) serving the Santa Maria, Orcutt and Five Cities area of the Central Coast of California.
* Nothing in this article is intended to solicit listings currently under contract with another broker. This article offers no legal or tax advice. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement. Mint Properties is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
Copyright© 2011 Tni LeBlanc *What is a Short Sale?*