What is a Short Sale?

A short sale is most simply defined as selling a property for less than the amount owed.  This requires approval form the mortgage lender who carries the note.  The process has fortunately become more streamlined in the last couple of years.   Thousands of homeowners facing hardship in our area have sucessfully completed short sales to get out from under the negative equity position in their homes and avoid foreclosure.   In most cases, a short sale has significantly less effect on a persons credit and puts the individual in a position to possibly purchase another home in as little as 2 – 3 years. 

The first and foremost requirement to qualify for a short sale is a “hardship”.  Some examples of hardship are as follows: 

Loss of employment or decrease in wages or hours

Business failure

Relocation

Death of a spouse or wage earner

Divorce

Severe Illness

Payment increase or mortgage adjustment (ARM)