DON'T MISS A NEW LISTING AGAIN!

Register Now
Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information is NOT Shared*

Quick Search


view all


Any

Any

No Min.

No Max.

Angela Porter-Rigdon

CalDRE #01442848
Citrus Heights, CA 95610

(916) 647-5660
Contact Us

Contact Us





* fields are required

What is a Short Sale Anyway?

An increase in foreclosure rates will inevitably bring with it an increase in short sales. But what is a short sale?

A short sale happens when you sell your house for less than your remaining mortgage balance, the proceeds of which go to the lender and in return the lender forgives the remaining balance. Selling your home as a short sale is one way to avoid foreclosure.

As a general rule, lenders lose money when they foreclose on a property. Consequently, they would rather not have to foreclose if it can be avoided. A short sale represents an opportunity to cut their losses because a short sale usually allows them to recoup more of the cost of the loan than a foreclosure process would.

However, don’t think that a short sale is an easy thing to accomplish. In order to get permission for a short sale, you must provide documentation showing a genuine financial hardship. And don’t think that the decision for accepting a short sale is solely in the hands of the lender. Sure the lender must first agree, but this is not the final word. If there is mortgage insurance involved, this company also gets input on the decision. If there is an investor backing the mortgage, they also get input as to whether to accept a short sale.

The transaction process for a short sale can be rather cumbersome as well, whether you’re on the buying or selling side. Many short sales fail due to additional demands by the lender, such as requiring the broker to reduce his or her commission and/or that the seller signs a document requiring him or her to pay back the shortfall.

If you’re on the selling side of a short sale, consider having your agent or other experienced professional negotiate with your lender for a better deal. And remember, if the lender does accept a short sale and forgives part of your debt, that is considered taxable income and you must declare it as such to the IRS.

Comments

There are no comments for this post. Be the first to comment!

Leave a comment

Comment
Already have an account?

Password Not Required


CalDRE #01442848
(916) 647-5660 | Contact Us

7416 North Lea Way - Citrus Heights, CA 95610
Copyright © 2018, All Rights Reserved

Vibe Realty BBB Business Review

Blog

Exterminating Pests- A Family Friendly Guide

The staff at Realty Times gives us their own family-friendly take on dealing with pests. Your home is a safe haven for your family, a harbor from the rough waters of life, an abode full of treasured memories and love. But sometimes it can become a home f... Read more

The 15-Year Mortgage vs. the 30-Year Mortgage

The pros of a 15-year, fixed-rate mortgage SHORTER PATH TO FULL HOMEOWNERSHIP Owning a home free and clear is a goal that burns bright for many people. What matters most to them is a feeling of safety from knowing that their home is fully paid off. BUI... Read more

Give a Small Bathroom Pop

Jaymi Naciri helps us open up the imagination with some clever ways to give a small bathroom some pop. Small bathroom? It doesn't have to be short on style. And it doesn't have to feel like a cave either. Many of the same tips for creating a stan... Read more

How to Choose a Roofer

Jaymi Naciri gives us great roofing strategy. Fall is a popular time to repair or replace a roof because the summer rush is typically over. But selecting the right roofing company can be more challenging than you might think, and with an expense this lar... Read more
View All
Real Estate Websites by iHOUSEweb iconiHOUSEweb | Admin Menu