HOME   | Direct: (805)446-8608 Fax: (805)496-0099
WHAT IS A SHORT SALE?
 

WHAT IS A SHORT SALE?

 

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's existing mortgage loans. It often occurs when a borrower can no longer pay the mortgage loan on their property. There are many reasons which can affect the borrower’s ability to pay their mortgage loan, such as loss of job, job relocation, decrease in salary, divorce, death, etc. As an alternative to foreclosure, the borrower Lists the property for sale contingent upon the existing mortgage lenders acceptance of the net proceeds (after usual costs and charges) as payment in full to release the lien from the property. This allows the lender to decide if allowing the Seller to sell the property at a moderate loss is better than foreclosing on the borrower.   Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from tax consequences in connection with the debt forgiven. Generally speaking, the existing mortgage lender will not approve a short sale unless there is a valid hardship for the borrower. A decrease in property value is not considered a hardship.

 

Home Page | Marc Smith | Property search | What's My Home Worth? | TARGET SEARCH | Short Selling your Home | Fine Homes | Testimonials | Free Real Estate Reports | free DVD Maximize your homes appeal | HOME BY DESIGN MAGAZINE | Free (SAVE OUR PETS) sticker | My Listings | Hidden Canyon Values | Rentals | Buyers Request Form | Sellers | For Sale By Owner Real Estate Info | Area Information | Utility Companies | School Links | Community Links | Weather Links | Download your free buyers guide | Values By Zip Code | Buyers | Dream Home Finder | Home Buying Info | 15 Reasons Why I Should be Your Real Estate Agent | Different Types of Real Estate Home Loans | For Sale by Owner Real Estate Info | Free E-mail Property Updates | Free Market Update | Free Real Estate Newsletter | Home Moving Assistance | How Much Real Estate Can You Afford | Just for Kids | Blog | Real Estate Tax Info | Real Estate Tax Info | Real Estate Tax Info | My Real Estate Link Partners | Real Estate and Mortgage information | Real Estate Mortgage Programs | Real Estate Refinancing Information | Real Estate Tax Info | Selecting your next home | Why Select me to Help You Sell Real Estate | Real Estate and Consumer Info | Guestbook | Free Property Updates | Link Partners Page | WHAT IS A SHORT SALE? | ST. JOESEPH | Marc's St. Joseph story | Real Estate Mortgage Calculators | Property Search (Ventura County - Residential) | Property Search (Ventura County - Rental) | Property Search (Ventura County - Mobile Home) | Property Search (Ventura County - Land/Lot) | Property Search (Ventura County - Residential Income) | YouTube
Site Map | E-Mail


Berkshire Hathaway HomeServices California Realty
2860 Thousand Oaks Blvd • Thousand Oaks, CA 91362
Direct: (805)446-8608 • Fax: (805)496-0099
CA BRE# 00961660
When buying or selling a home.......Don't go it alone!!



Logo