Avoid Foreclosure | Short Sales
At Beach Realty Group we have several agents who have extensive knowledge and experience selling short sales. Several of our agents have earned the CDPE (Certified Distressed Property Expert) designation. We are committed to helping our short sale clients avoid foreclosure and get their properties sold quickly and for the best possible terms.
What is a short sale?
A short sale is often an excellent alternative to a foreclosure. A short sale is for property owners who absolutely need to sell, and who owe more on their properties than they are worth. Prior to now, it was actually very unusual for a bank or lender to allow a short sale. Nowadays, however, as a result of drastic changes in the market, banks and lenders tend to be considerably more negotiable with regards to these types of transactions. Recent changes in bank policies along with government programs have increased the likelihood of having a short sale approved.
The definition of a short sale:
A homeowner is “short” when the amount owed on his/her property is more than current market value. A short sale takes place when a negotiation is entered into with the homeowner’s mortgage lender (or lenders) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then “sold short” of the total value of the mortgage.
In order for a property owner to be eligible for a a short sale, they must fall into any or all of the following circumstances:
Financial Hardship – A situation causing you to have difficulty paying your mortgage.
Monthly Income Shortfall – Put simply, “You pay out more each month than you earn.” The lender will want to see that you cannot afford, or in the near future will be unable to afford your mortgage.
Insolvency – The lender will want to see that you do not have considerable liquid assets which would enable you to pay down your mortgage.
This sounds easy, however it is a complicated process that requires the expertise of an experienced professional. We are able to assist with the fast execution of a short sale transaction for qualified sellers.
Please call 843-424-6900 if you have questions or would like to know if you qualify for a short sale.
Understanding your alternatives could potentially make a huge impact on your financial health over the next several years.