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SHORT SALE INFORMATION AND OPTIONS

SHORT SALE CONSULTATION IS FREE AND CONFIDENTIAL

REMAX Tri Cty Realty

There is no obligation on your part when you submit this request, our goal is to provide you with information and options about short selling your home.


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SHORT SELLING INFORMATION

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A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.

We can help you process a short sale with your lender at no cost to you!

STEP #1

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Meet with homeowner to discuss option and form a strategy to accomplish a successful short sale request.

  • List property for sale
  • Documentation Required 
  • Home preparation. 
for sale sign

STEP #2

REMAX Tri Cty Realty

Obtain an offer from a qualified buyer and documentation on his or her ability to perform the purchase.

  • Submit Short Sale Package to lender
  • Negotiate the request with the bank.
  • Obtain short sale approval.
Get your home value today

STEP #3

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This is a very important step to take into consideration and purchaser must be ready to open escrow and do his due diligence. 

  • Open Escrow
  • Complete all Inspections
  • Close Escrow
REMAX Tri Cty Realty

THE SHORT SALE INFORMATION

A short sale has two intrinsic and inseverable components. A Short Sale is successful when a lienholder(s) (a.k.a. Mortgage Company) is agreeable to net less than the amount owed on the note (debt) as the result of  an arm’s length sale at or below the Appraised Value for that property. The agreeable selling price is intrinsically defined to be at or less than the appraised value allowing the process to be attainable. A prudent buyer will not pay greater than the appraised value, and a Bank or Finance company will not provide a mortgage for greater than the appraised value, thus limiting the Short Sale proceeds to a maximum gross yield of the property’s Appraised Value. A short sale may occur when the lienholder expects that a mortgage will likely never be repaid and the home’s value (due to the home’s condition, such as if a prior homeowner vacated the property and left it damaged or trashed, or general economic conditions in the area or nationwide) will not (either quickly or at all) regain equity to allow full payment of the mortgage.

It’s important to understand that a Lien holder is not bound to accept the Appraised value and can demand a greater selling price. In this case, a “Sale” with a prudent arm’s length buyer is no longer a reasonable or attainable expectation. Instead the demand for greater than the Appraised Value (but less than the amount owed on the debt) is called a “Short Settlement”. Some Lien holders will agree to a Short Sale but not a Short Settlement while demanding greater than the Appraised Value. This is a paradox as neither is achievable and both predestined for failure.

Therefore, a “Short Sale” can only be accomplished when a Lien Holder is willing to accept less than what is owed on the debt while also agreeing to accept a sales price that is at or below the appraised value for the property.

Creditors holding liens against real estate can include primary mortgages, second mortgages, home equity lines of credit (HELOC), homeowner association liens, mechanics liens, IRS and State Tax Liens, all of which will need to approve the sale in return for being paid less than the amount they are owed. The lien holders do not have to agree to accept less, but they often do since the alternative is to let the property go to foreclosure.

A short sale is a more beneficial alternative to foreclosure and has become commonplace in the United States since the 2007 real estate recession. Other countries have similar procedures. For instance, in the UK the process is called Assisted Voluntary Sale. While both short sale and foreclosure result in negative credit reporting against the property owner, because the owner acted more responsibly and proactively by selling short, credit impact is less.

Sidney Manzo Real Estate - Since 1990

Experience
& Benefits

My goal is to provide you with friendly, knowledgeable, and professional representation, with a focus on client satisfaction & your bottom line.

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