What is A Short Sale?

What is a short sale? A short sale occurs when a home owner can no longer afford to make payments on a home, and the lender agrees to accept less than the total amount owed on the home.

Here is an example:

Lets say Dave and Susan had a sudden and unexpected event happen that has left them unable to afford their mortgage. They contact a realtor to sell their house. They owe $140,000 on their mortgage. After doing a CMA, the realtor finds that the market shows that homes comparable to theirs are selling for $110,000. So, if they are able to sell their house at market value, this would leave them with $30,000 left on their loan. In this case, since Dave and Susan can no longer pay their mortgage, they can contact the bank or mortgage company they have their home loan through and see if they will agree to take less money than what they is still owed on the loan.

What are some of the reasons you may qualify for a short sale?

There are different reasons why someone would want to apply for a short sale. Some of the most common reasons are:

-Loss of Employment
-Divorce
-Sudden Illness or Death
-Bankruptcy

There are benefits for a seller to choose selling their house as a short sale instead of a foreclosure. One main benefit is that a short sale is not as bad on your credit as a foreclosure. Other benefits are that you get to work with a realtor of your choice to sell your own home. You can also choose to live in your home until the sale is completed.

Think you house may qualify for a short sale? We are experienced in selling and buying short sales. Give us a Call at 417-830-0636 or Email (evanryan@kw.com) , we would love to talk with you about your situation and see what we can do to help.