Short Sales Aren’t as Scary as They Sound

Owe more on your home than it’s worth? You may have options.

The words “short sale” can sound intimidating, but a short sale may provide a solution for homeowners experiencing financial hardship or who owe more on their mortgage than their home is currently worth.

A short sale occurs when a home is sold for less than the amount owed on the mortgage and the lender agrees to accept the proceeds from the sale. While the process requires lender approval and can take more time than a traditional sale, a short sale may be an alternative to foreclosure in certain situations.

Why Consider a Short Sale?

Depending on your circumstances and lender requirements, a short sale may:

• Help you avoid foreclosure

• Allow you to take a more active role in selling your home

• Potentially reduce or resolve certain mortgage debt, depending on the lender's approval

• Give you an opportunity to begin moving forward financially

• Provide a path forward when a traditional sale isn't financially feasible

It's important to understand that every situation is different. A short sale does not automatically mean the remaining mortgage balance is forgiven, and there can be tax, legal, and credit considerations. Your lender and appropriate financial, tax, or legal professionals can help you understand what applies to your situation.

What Does the Process Look Like?

While every short sale is different, the process generally involves:

1. Evaluating your situation
We look at your home's value, mortgage balance, and circumstances to determine whether a short sale may be worth exploring.

2. Connecting with your lender
Your lender will determine its requirements and what documentation is needed.

3. Listing and marketing your home
I'll help position your property appropriately, market it to potential buyers, and work to obtain a qualified offer.

4. Submitting the offer for lender approval
The lender reviews the offer and supporting documentation. Negotiations may be necessary before approval is granted.

5. Moving toward closing
Once the required approvals and conditions are satisfied, the transaction can proceed to closing.

Complicated Doesn't Mean Impossible

I don't want to tell you that short sales are easy. They require patience, paperwork, communication, and persistence.

But they don't have to be scary.

As a Realtor who handles short sales, my goal is to help take an overwhelming situation and break it down into manageable steps. I'll help you understand the real estate side of the process, communicate with the parties involved, and keep things moving as efficiently as possible.

Most importantly, there is no judgment.

Life happens. Financial hardships happen. Markets change. Sometimes you simply need someone willing to sit down with you and talk through your options.

Don't Wait Until You're Out of Options

If you're struggling with your mortgage, concerned that you owe more than your home is worth, or worried about foreclosure, let's talk before you panic.

A conversation doesn't commit you to a short sale. It simply gives you the opportunity to understand your options and determine what may be the best path forward.

Short sales may be complicated—but with the right guidance, they don't have to be scary.

Let's Talk About Your Options.

PJ Aday, Realtor
Helping you navigate real estate—one step at a time.