Header Image

Is A Short Sale For Me?

A short sale is a real estate transaction in which the bank or lender agrees to let the homeowners sell their home for less than their loan balance. In some cases, the sellers don't need to pay back the difference between what they owe and the proceeds of the sale.

Recent changes in the industry have streamlined the short sale process, making this sort of transaction a popular alternative for both buyers and sellers. Additionally, banks are much more interested in facilitating short sales and avoiding foreclosures that result in placing the properties back on their books.

Who benefits in a short sale?


In many cases, short sales present a proverbial "win-win" situation. Here's how:
Sellers avoid foreclosure and protect their credit from the harder hit of foreclosure.
Buyers receive a good price on the home.
Lenders avoid a costly foreclosure. The potential loss from a foreclosure is typically higher than a loss from a short sale.

 

How it works

Say you owe $200,000 on your home and can no longer make the mortgage payments. One option is to refinance your home and secure a lower payment based on a longer term or better interest rates. But if your property has lost value due to local market conditions (say it would sell for only $150,000), refinancing isn't feasible. If the bank agrees to a sale at $150,000, it's called a short sale.

Although short sales have become more common in recent years, banks don't always grant them. In general, they approve short sales in theses situations:


Seller has a hardship (such as divorce, bankruptcy, unemployment, job relocation).

Seller owes more on the mortgage than the home's current market value.

Mortgage is in or near default status.

Seller has no assets.

However, different banks and lenders have different requirements. So sellers should discuss the short sale option with their lender.

Short sales can present a great deal for buyers. But the process is a bit more complicated than a normal home purchase, and it will take patience.

GET IN TOUCH

Community Updates

Beware the (I'll get your home sold in a week) agent in The

Beware the (I'll get your home sold in a week) agent

The "Real" Estate Blog

I hear this one all the time from prospects looking to list their house. "Well, agent xyz told us that if we listed with her, she'd have it sold in a week." This would fall into the category of "If it sounds too good to be true, the probably is." The majority of agents are not going to make this claim, but rather will give you an honest market analysis, inform you as to how weak or strong the market is, especially the market in which your home resides, and present the objective facts. A good agent will then lay out an effective marketing plan, where the majority of the focus should be on "online marketing". Be careful to not get caught up in empty promises, reduced commissions, and being talked in to lowering your price below market value (unless you must have a quick sale). The key to choosing a good listing agent is to objectively determine who is going to provide you the best opportunity to sell your home. Will your listing agent also aggressively work to find buyers, or will they just list your home and wait for another agent to do the work.

Buyer and seller real estate app, right at your fingertips. in The

Buyer and seller real estate app, right at your fingertips.

The "Real" Estate Blog

Browse real-time MLS listings in the Iowa Great Lakes Region
Filter for specific areas and amenities
Be notified when there is a new MLS listing match, status change, or price drop
Stay in touch with your agent
Save searches and favorites
Agents, Buyers, Lenders and Appraisers can view your transactions
View, download and sign documents

Every 30 seconds, a RE/MAX agent helps someone find their perfect place. Let us help you find yours.

1. Search "SellBoji" in your app store on your cell phone.
2. Download the app
3. Create a profile to access info or save searches (This is not necessary to browse the listings)
4. Enjoy all the benefits of the real estate app

The Family Diner in Spirit Lake

The Family Diner

Spirit Lake

The Family Diner is Spirit Lake, IA is a local favorite! They offer up a large portion for small money, but whether you come early or late you may be in for a wait. With homemade bread and the largest sausage patty you have seen, The Family Diner is consistently delicious. They are open only for breakfast and lunch and closed two days a week. In my former career at Stylecraft, the family diner was definately a favorite when our friends would visit from North Carolina. They were always inpressed with the bread and rolls and corn beef hash.

Subscribe To Our Newsletter

The newsletter is sent periodically and will updated you on the latest real estate news and offers.