Whenever a home owner is “upside down”, meaning that they owe more on their mortgage then the unit is worth in today’s market, and they want to sell the unit, they are a candidate for a “Short Sale.”
I say candidate because not every owner will qualify for a “Short Sale.”
If the owners can make the payments, or if they have other assets to cover the difference between the sale price and the balance of the mortgage, they don’t qualify.
What happens is, to put it simply, the bank saves money when they can avoid a foreclosure. Foreclosure can cost a bank $35,000 and take 18 months to complete. Banks don’t want to own property, they want to make money by lending your savings to someone else at a higher interest rate then they are paying you. So, they want to “Move” money, not property. Your property is a number to them. How can they make more money on your loan? They can service the loan or sell the loan.
In order to minimize the loss in a home that is “Under Water”, they can agree to a “Short Sale.”
There are several websites that go into all the details about “Short Sales.” This can be quite extensive. To really understand this you may wish to visit some of them. To start you might want to begin on some links below;
Fannie Mae is a good start.
Another site is the Governments program. This government program can be very helpful to the “Under Water” seller, because of the benefits they can get.
If the sellers have no other assets to make full payment on their loan, and if their bank agrees to the governments “HAFA” guidelines, sellers can get $3,000 to relocate. HAFA stands for Home Affordable Foreclosure Alternatives Program
There are a lot of paper work and guidelines to go over, best to deal with a Certified Short Sale Agent who has ties to processors who know the ropes. Sloppy paper work and no follow up action can make buyers abandon the process, and then the sellers are in a deeper hole and the property goes into foreclosure.
You can look up all the needed documents required, or you can call me see if you can qualify.
I can be reached at 917-696-0275, if I don’t answer right away, please leave a message and I promise I’ll return your call ASAP.