What is a Short Sale?
A short sale is where the seller currently owns more money than what we can sell the home for. In a short sale, the bank has to approve for the seller to approve the sale of the home for less money than what the borrower currently owns the bank. In essence, the seller is selling the home short of the funds they own to the bank.
The borrower might have one or two mortgages on a home. In the event, there are two mortgages on a home both lien holders have to approve the short sale. Generally, the second lien holder will go along with the first lien holder. An approval for a short sale can take anywhere from a couple of weeks to a couple of months depending on the lien holder involved.
At what point should a borrower consider a short sale? If you are upside down on your home and you are in any type of hardship like you are in an adjustable rate mortgage and the mortgage rate is adjusting to a rate you can’t afford anymore, you are getting a divorce, or have medical bills, are some of the most common hardships.
Are you in a situation where you consider a short sale?
Would you like to discuss other mortgages and options for your short sale in Woodbridge or anywhere else in Northern Virginia?
Call me TODAY to find out more about a Short Sale.
Where to start if you are considering a Short Sale
Hire a Realtor®
Call a local Real Estate Agent that is familiar with the area and has successfully closed short sales before. If you hire Claudia S. Nelson as your Realtor, to help you through the Short Sale Process, I will have you sign an Authorization Form for myself and the professional negotiator who will assist in the process.
Meet your Real Estate Agent to discuss all the details about the short sale and to sign a listing agreement
List your Home for Sale
Your agent will list your home for sale and present you with offers received.
Complete Short Sale package
Collect all supporting documents for your lender or lenders and complete the short sale package
- Once an offer is received and accepted by you, we will submit the offer along with the entire short sale package to your lender. The actual short sale approval can take as little as a 2 – 3 weeks or as much as 6 months, depending on your situation and the bank or banks involved.
- Short Sale Approval & Settlement within 30 – 45 days from receiving the approval.
In a Short Sale transaction, the seller does not have to pay the Realtor® commissions or any of the closing cost, the bank generally will cover all of these costs. The banks might not be covering taxes, past due HOA fees or any outstanding judgments.
You should also consult a local CPA or tax attorney to discuss any possible tax implication.
If you are considering a Short Sale or would like to explore ALL your options NOW is the time to CALL Claudia S. Nelson:
What is a short Sale by
Woodbridge VA Real Estate Agent Claudia S. Nelson