A short sale is the sale of a real estate property for which the lender is willing to accept less than the amount still owed on the mortgage. For a sale to be considered a short sale, these two things must be true:
When to use short sale to avoid foreclosure?
A short sale occurs when the proceeds from a real estate transaction fall short of the original loan balance. It’s often used by homeowners who are underwater on their mortgages and can’t keep the home but want to avoid foreclosure.
How long does it take to list a house for short sale?
List your property: Once the lender has approved the short sale, you can list your property with a real estate agent. You’ll need to present any offers to the lender for approval. This process can take two weeks to several months. If you have a second mortgage, both lenders must approve each other’s terms,…
How to get a mortgage for a short sale?
Get pre-approved for a mortgage: Buying a short sale property begins the same way as buying any other home: get pre-approved by a lender. They will tell you how much you can afford, how much cash you need, and what your monthly costs will be.
When does a lender approve a short sale?
When a lender approves a short sale, it’s agreeing to sell the property for less than the outstanding mortgage balance against it. There’s something in this for the lender when foreclosure seems inevitable.
Is the short sale process intimidating for sellers?
The short sale process can seem intimidating, yet getting a handle on the steps can make it a lot less scary—and help home sellers navigate a difficult financial situation without too much damage.
Do you have to sign off on a short sale?
Talk to your lender about a short sale Since a short sale means you’re trying to sell your house for less than you owe on your mortgage, your lender will have to sign off on it. But first, the lender is going to need proof that the short sale must happen, says real estate agent Lisa Blake, also of The Blake Team at Keller Williams.
