Here’s everything you need to know about short sales and when they’re necessary.
What is a short sale? How does it work, and what are the nuances of that situation?
A short sale occurs when the proceeds from a home sale fall short of covering the mortgage balance on that home. That requires the lender to take less money for the seller’s house than what is still owed on it. Typically, lenders agree to this so they can at least recoup a portion of that mortgage loan.
This is different than a foreclosure, which is when the lender comes and actually takes the home back from you. Lenders will usually begin the foreclosure process within 90 days (30 or 60 in some cases) of learning about the home’s insufficient proceeds, but you first have the option of attempting a short sale.
If you or someone you know is getting behind on their mortgage and want to learn more about short sales and how that would affect you, please reach out via phone or email. We offer a free home evaluation, and I’d be happy to help you.
Also, don’t hesitate to reach out if you have ideas for topics that I should cover in my blog.