A short sale is when you sell your house for less than you owe, your lender is asked to forgive the deficiency between what you owe and the sales price.
Example:
Purchased house for $150,000
House is worth $100,000
Sell your house for $100,000
Can you imagine selling your house for the $100,000 and still owing $50,000 to your lender, once you move out of the house?
This could happen if your Short Sale is not negotiated to “waive the deficiency amount”.
There is a $50,000 difference between what you owe to your Lender and the sales price. We, at Secure Real Estate, negotiate with your Lender to forgive the difference or deficiency amount. So you, the homeowner, can walk away from the home owing nothing.
What are the steps for a short sale Seller?
- Decide you no longer can or want to continue to pay for your home that is worth less than you owe
- Contact SRE to evaluate if a short sale is your best option (based on type of loan you have and tax consequences)- SRE SHORT SALE ASSESSMENT
- List your home for sale with SRE- Home is for sale on the MLS for buyers and Realtors to see
- Find a buyer- a buyer submits a purchase contract and you accept (this is when the short sale process begins)
- SRE negotiates the short sale with your Lender
- Your Lender issues an approval letter- You review the approval terms (once you approve the approval terms, the sale begins like a traditional real estate transaction)
- Buyer proceeds with their inspection & appraisal
- Home closes- Short Sale is completed
In my experience, the toughest step is deciding you don’t want to keep paying for your home or cannot continue to pay for your home. The hard part is realizing that it isn’t the great financial decision you originally thought it would be.
We all wish we could go back and change certain life decisions, however, we cannot. The most common comment we get from our clients once they complete a successful short sale is “we wish we would have called sooner”.
Check out this video of real Short Sale Sellers.
