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Real Estate Advice

Short Sales Explained

A homeowner is considered "short" when the amount owed on the mortgage is higher than the current market value of the property. A short sale occurs when the homeowner enters into an agreement with the mortgage company or companies where they agree to accept less than the full balance of the loan at closing. A buyer closes on the property and the home is sold short of the total value of the outstanding loan.

For homeowners to be considered for a short sale, they must prove financial hardship that would lead to them not being able to afford monthly mortgage payments. Most lenders will also want to see proof that a homeowner does not have sufficient liquid assets at his disposal to pay down the mortgage enough to get out from underwater. Though it sounds relatively simple, the process is actually quite complex, and experts advise the hiring of an experienced professional for homeowners considering the short sale option.

If you would like more information or feel you may qualify for a short sale, please contact us.

Understanding your options now could mean all the difference in the world.

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