Is it time for a Short Sale?

May 23, 2008 in Bennettsville Real Estate Consulting, Home Buying, Home Selling, home values
Tags: avoiding foreclosure, foreclosure options, short sale

Unforeseen circumstances can happen to anyone.  Job loss, death of a spouse, medical emergencies, or divorce, can change household incomes to the point where making mortgage payments becomes a struggle.  Couple that with declining property values and a short sale could be needed in order to avoid foreclosure.

Every situation is different and homeowners need to be pro-active when it comes to communicating with their lenders and their REALTOR® when trouble making payments arise especially if the property has been on the market for sale.  Short sales could be an option if the outstanding balance of a mortgage is more that the property would sell for in the current market.   

Short sales are not an option for all sellers and require lender approval.   The approval process can take several weeks or longer and the seller and agent must provide a financial package and market information to the lender.  Avoiding foreclosure is the main goal of all parties and sellers considering this option should consult with their REALTOR® an attorney and tax professional.  Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.