The term, Short Sales, has been bandied about for the last several years but, particularly in the last 12 months.  Some people feel that short sales are the answer to their mortgage problems, while others don’t know what the term really means.

 

A short sale can happen when a mortgagee is not able to pay his or her mortgage and the bank, or lending institution, in place of foreclosing on the property by taking it over, and selling it themselves as a foreclosure sale, elect to allow the mortgagee to stay in the home by putting it on the market as a short sale.  With a previous agreement, the bank agrees to take less for the property than is actually owed on the first mortgage.  For example: a home was purchased for $500,000 and has a loan on the property of $400,000.  The current market value for the property is $380,000.  The owner of the property has put the property on the market and has received an offer to purchase the property for $375,000.  The lender, at their option, can decide to accept the purchase price and forego the difference between the $400,000 loan amount and new purchase price of $375,000 with a difference of $25,000 which they will forgive.

 

There are a number of criteria and agreements that go along with a short sale between the property owner and their lending institution that must be adhered to.  One must be aware of the ramifications and the exposures.  We encourage people considering a short sale, to choose an expert in the field so that all of the options are understood before entering into an agreement.

 

Some little know facts: A person having a security clearance in their occupation such as an airline pilot, policeman and many government jobs, can loose their security clearance if they are involved in a foreclosure, thus loosing their jobs.  70% of the people who are starting to miss their mortgage payme

nts, do not even have their homes on the market.  The peak of the problem home loan market is not expected to lessen until after 2011. This is when most of the shaky loan activity, which caused this debacle in the first place, will finally have come to an end.

 

If you need information on the Short Sale process, please, CALL  the Schaller Family Realtors.  We are fully schooled in the short sale process and would consider it a privilege to assist you.  Our family to your family.

 

Schaller, Family Real Estate

Kane, Aimee, Lil or Don Schaller

Alltruckeehomes.com

800-660-0903

Dickson Realty, Truckee