What's a "Short Sale" anyway?

Short sales are everywhere! You see them online, in newspapers, homes magazines and hear about them on tv, but what are they? Short sale refers to a situation when a homeowner owes more on his/her home (mortgage) than it is currently worth on the market. So if he/she can sell it, and get the bank to agree to take less than is owed, the amount paid to the bank is "short" of the amount owed. Why would a bank allow this? The cost for them to go through the entire (legal) foreclosure process and then hold the properties and pay taxes on them and pay (real estate companies) to market them, would far exceed the smaller loss they would be willing to take on a short sale. Some banks will also excercise their right to persue the homeowner for a deficiency judgement, or basically go after them for some or all of the difference between the (short) sale price and the amount owed. A short sale will show up on future credit scores but is far less damaging than a foreclosure. So is short sale a viable option for getting out of financial trouble, it depends. 1st step if you are experiencing difficulties in making your mortage payments is to contact your lender. They would much rather work out a solution with you to keep the home and now there are programs set up to help. Ask. You are not alone. You see the news, you know that millions of people have suffered in these trying economic times, you may be one of them. If selling your home seems inevitable, call on me. We will get your home out there on the market as quickly as possible and do the best we can to get it sold before it's too late. I can help. wendydittrich@familyrealtygmac.com