How Does a Short Sale Work?
Nobody buys a home or other real property with the intention of not making the mortgage payments. But sometimes catastrophic events occur, such as divorce, illness or job loss, and the next thing you know, foreclosure is looming on the horizon. A short sale might be an alternative, but it’s not without its drawbacks.
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You’ll Need Lender Approval
A successful short sale means you’ve sold your property for less than its outstanding mortgage balance, and the lender has released its lien to allow the sale to go through. If your home’s fair market value is $250,000 and you have a buyer willing to pay that amount, but your mortgage is $300,000, your lender might approve the sale regardless of the fact that the proceeds won’t cover your whole loan. You must establish that some hardship exists to convince your lender that it would have to go to the time and expense of foreclosing otherwise. For the lender, a short sale is often the lesser of two evils.
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The eligibility and necessary documentation required for a short sale varies according to the seller's lender and any investor guidelines that may.
A mortgage short sale is when a lender agrees to discount the loan on a mortgage when someone is in default, or.
Work for Yourself; Your Business. Starting a Business; Managing Employees; Running a Business; Insurance. Short sales are often between 10-20% off.
Work with your real estate agent to sell the property and stay in contact with your lender to keep them updated on.
How Does a Short Sale Work for the Seller? The eligibility and necessary documentation required for a short sale varies according to.
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