What is a short sale?
A short sale is a transaction in which the lender agrees to accept an amount less than that of the mortgage owed by the owner. In some cases the difference is forgiven, and in others the owner must make arrangements with the lender to settle the outstanding difference on the debt.
Since a short sale generally costs less than a foreclosure, it can be a viable way for a lender to cut losses. At the same time, it may also be the best alternative for homeowners if their debt is greater than the property’s market value, since a short sale does not affect your credit history as much as a foreclosure. As a result, homeowners can qualify for another mortgage once they have recovered financially.
It is very important that you understand that a short sale is not a typical real estate transaction, and the agent you hire to carry it out needs to be prepared to aspire to a successful transaction. We at Royal Realty Services are certified as “SFR – Short Sale & Foreclosure Resources”. This is a certification granted by the National Association of REALTORS® where we are prepared to:
- Direct distressed vendors to financial, tax and legal professionals.
- Evaluate sellers to see if they qualify for a short sale.
- Create the necessary document package for a short sale.
- Negotiate with the lenders.
- Negotiate the agreements with the buyer.
- Limit the risk.
- Protect buyers.