![]() ![]() The result is a more complicated process in which the seller needs to get permission to start the process and doesn’t have control of how or when it ends because the lender decides which offer to accept.įollow these two steps if you think you might need to do a short sale. While most home sales occur without the knowledge of the lender until the sales process is in its late stages, the lender is involved from the beginning of a short sale. The most significant difference between a short sale and a typical home sale is the lender’s central role in the short sale. If you’re part of that small minority, though, a short sale could prove helpful. Short sales aren’t nearly as common today, as just 3% of all mortgaged properties, or 1.6 million homes, had negative equity in the third quarter of 2020, according to CoreLogic, a property analytics firm. Homeowners who could no longer afford payments often were forced into short sales. Short sales were more prevalent during the Great Recession when home values crashed in many parts of the country, leaving struggling homeowners with negative equity. A short sale is often a shorter process than foreclosure, but there’s no guarantee your lender will agree to this option.Įven though a short sale is similar to a typical home sale in certain ways–you would likely rely on a real estate agent to list the property, and it could be sold to a conventional buyer who finds it online–it takes considerably more paperwork and your lender will be heavily involved. A short sale occurs when you sell your home for less than you owe on the mortgage, and your lender forgives the outstanding balance instead of pursuing a foreclosure case.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |