Short Sales

What is a short sale?

A short sale means the seller’s lender is accepting a discounted payoff to release an existing mortgage. In other words, in the short sale process, you sell your home and settle your mortgage debt for less than the amount that you owe.

The goal of a short sale is to help you avoid foreclosure if you are no longer able to remain in your home.

Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.

Be aware that the seller need not be in default – to have stopped making mortgage payments – before a lender will consider a short sale. A lender may consider a short sale if the seller is current but the value has fallen. The seller may have over-encumbered, owe more than the home is worth, so a discounted price might bring the price in line with market value, not below it.

You may be eligible to sell your home in a short sale, if you:

  • Have a hardship, such as a job loss, divorce or medical emergency.
  • Owe more than your house is worth.
  • Are unable to afford your current monthly mortgage payment.
  • Are unable to modify your current home loan.

The Short Sale process

Step 1: Call Stonehurst Real Estate Group and we will work with you to explore and exhaust any/all options that may be available to help you stay in your home. The sooner we start working together, the more options you may have available.

Step 2: After all other options have been exhausted and you have decided a short sale is right for you; we proceed to assist you in listing your home for sale using our exclusive marketing system, determining the fair market value of your home by reviewing the prices of recently sold homes comparable to yours in your local market. We then proceed to place your property on the market.

Step 3: Once an offer has been received, we present it to you and begin working to gain approval of your mortgage short sale from all necessary parties.

Step 4: The Lender(s) will determine the fair market value of your home as well, by ordering a valuation – a BPO (Broker’s Price Opinion) and/or an appraisal.

Step 5: If all parties agree to the terms of the offer (buyer, seller, and any other debt holders), your short sale offer will be approved.

Remember, a short sale approval may take longer than getting a traditional mortgage approved. Once your loan has closed, the proceeds are paid according to the terms of the agreement.

Most common questions from Home Owners are:

How will a short Sale affect my Credit?

How late in the pre-foreclosure process can you start a short sale?

What documents are necessary to proceed with a short sale?

Will a lender allow the seller to make a profit on a short sale?

If a seller is in bankruptcy, will that affect the short sale of the property?

For more detail information about these questions and how can they relate to you, call Stonehurst Real Estate Group today at 781-549-7511. Or, feel free to contact us by submitting your information below free of charge, and with no obligation.