What is a Short Sale?
A "Short Sale" occurs when a Lender agrees to accept less than the amount owed to payoff a loan as an alternative to foreclosure. If the property is worth less than the amount owed on the loan, than even if the Lender forecloses and take back the property, they know they are going to take a loss. We can often show the Lender that they will do "better" if they take less then what is owned now rather then taking the property back by foreclosure and trying to sell it later.
How do Sellers Benefit from a Short Sale?
Seller can avoid having a foreclosure on their credit report. Most lenders tend to report "settled" upon closing a short sale. According to recent reports, on average if a borrower misses 2-5 mortgage payments and does a short sale, their credit score will be affected by an estimated 30-60 points. On the other hand if a borrower goes into foreclosure, it can affect their score by 140-200 points.
If you are in a situation where you own more than what your home is worth or if you need to sell but don't have the money for the difference at closing, this may be the option for you.
When thinking about short sales, you have to keep in mind one thing; it is a very difficult transaction process that can easily cause more harm than good if not performed properly. This is why your choice in real estate agents may be the single most important factor determining whether the process is successful or not due to the complex issues that may arise.
As a Certified Short-Sale Professional, CSP, I have been trained to navigate through the requirements that need to be met to get all parties to agree to the short sale. Please contact me today if you would like more information on Short Sales.
For More Information Contact:
Rob McCain
Coldwell Banker Real Estate Professionals
70 Sturgis Corner Dr
Iowa City, IA 52246
Licensed to sell Real Estate in the State of Iowa
Mobile: (319) 621-SOLD w Direct: (319) 887-7249
Fax: (319) 351-6889 w Toll Free: (800) 399-8485
E-Mail: Rob@RobMcCain.com