Short Sale Information for Sellers in Foreclosure
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DEFINITION OF A SHORT SALE:
A short sale takes place when the sales price of a house is less than the outstanding mortgage balance on the property and the lender agrees to absorb the difference.
WHY BANKS APPROVE A SHORT SALE:
Foreclosure proceedings are very expensive for banks. It may be less expensive for them to accept a short sale if the homeowner is no longer able to afford their payments. In that case it is a prudent business decision. Banks don't agree to short sales because they "feel sorry" for the owner or "understand" their circumstances. Short sales happen at all price points - from under $100,000 to homes in the millions. Each short sale represents a family in financial distress for a variety of reasons such as divorce, job loss, health expenses, or poor financial decisions. It's up to each bank to decide if they will accept less than the total due. Every bank handles short sales differently and each homeowner's situation is unique. One of the most important and least understood elements of short sales is that the homeowner must be approved for a short sale. In other words, they have to provide proof to the lender that they can no longer afford their home. We can guide you through the process.
Fill out Your Property Information to see if you qualify: "Do I qualify for a short sale in South Carolina?"
HOW THE BANK, THE SELLER, AND THE BUYER BENEFIT FROM A SHORT SALE:
The Seller avoids a foreclosure on their credit report.
It can help the Seller with a solution to an embarrassing situation.
A house may be spared abandonment. Some short sales homes are vacant, but they typically aren’t abandoned.
The banks don't have to pay their attorneys, money collectors, hazard insurance, taxes on the homes, etc.
The Buyer gets a house at a good price; and typically the home is in better shape than a foreclosed house.
The Bank does not have to seize, evict, manage, clean-out, maintain and resell the asset. This is a big savings to the bank.
The Neighborhood is spared another boarded-up vacant foreclosed house in the area.
Other Sellers in the area are spared the stigma a low sale pirce of a foreclosed home that brings down the property value in the entire neighborhood.
The Seller will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 years.
SELLERS FREQUENTLY SAY:
"I am unable to continue making my mortgage payments.i am two payments behind. I'm afraid they are going to foreclose on me. I owe $200,000.00 According to the market analysis, my house will most likely sell for only $150,000. I don't have $50,000 to make up the difference. Will the The bank let my house be released for $150,000?" This is happening very frequently now if you qualify for a short sale.
You can find out more information here on how to sell your house fast in Charleston South Carolina. |
