Some commonly refer to the short sale as the sale of the upside down house. And while that is a great analogy it may not make a lot of sense to someone outside of the mortgage and real estate business. So here is the definition in its simplest terms.
A Homeowner is “short” when:
When a homeowner (borrower) owes an amount on their property that when combined with closing costs and commission is higher than current market value.
A “short sale” occurs when:
A negotiation is entered into with the homeowner’s mortgage company(s) to accept less than the full balance of the loan at closing. Once agreed upon, a buyer closes on the property and the property is “sold short.”
Obviously there is a great deal more to it than that…but that’s where it starts.
If you are needing to move or are having financial difficulties that are getting in the way of your ability to pay your mortgage we can help you assess your situation from a professional viewpoint. Selling the home “short” or losing the home are not your only options! Call us at 951-522-0518 or email at firstname.lastname@example.org. We’re here to help.