What is a Short Sale?
A short sale is an “arrangement” between the current owner of a home and the bank that holds the mortgage, to accept an offer for less than the total amount owed to payoff the note. The “deficiency” is the difference between the amount owed and what the bank collects at the short sale.
The elements of a short sale are generally these:
1) The property is worth less than is owed.
2) The seller has some hardship that makes it impossible or extremely impractical for the seller to keep the property.
3) The seller is cooperative and willing to work with a real estate broker to package a short sale.
4) The lender is contacted and expresses willingness to entertain a short sale.
5) The property is listed, with appropriate caveats and protections for the seller, priced properly, and marketed aggressively and effectively.
6) The lender is presented with an offer, accepted by the seller, along with a completed short sale package and narrative explaining why the short sale is necessary and desirable.
7) The lender approves the offer and escrow closes as usual. No proceeds go to the seller.
Why a Short Sale ?
The short sale process can be a relief to many homeowners who find themselves in financial distress. Our job at Michelle Miralles Realty is to find solutions for our clients and many times negotiating a short sale may be the best answer.
For sellers who are in default of their mortgage, catching up many times is not an option. The lender may be willing to renegotiate or modify the existing loan to make it feasible for the homeowner to stay in their home. If the lender is not willing to do this then a short sale may be the answer. Even though a short sale may still effect the homeowners credit negatively it is still generally better than a foreclosure. A short sale usually carries less damaging effects on your fico score compared to a foreclosure.
At Michelle Miralles Realty we strive to market all our listings aggressively and understand that in many cases we are our clients best hope to relieve a stressful financial situation. We market all our listings
Including short sales and foreclosures effectively to ensure high traffic and the best possibility of offers. We will work together with sellers and lenders to ensure proper and efficient communication and a successful transaction.
For more information on this process please contact me directly at 678-358-1031.
Thank you,
Michelle Miralles
