The Short Sale

Homes for Sale in Chesterfield, VA

Wednesday Word of the Week

(Okay, so really it's a term, but I couldn't pass up the alliteration!)

A common misconception is that the word "short" refers to a length of time.  I.E., a "short" sale should be quick.  In reality this means that the lender will accept a payment that is "short" of the full amount due on the home.

In short, the short sale is a last-ditch effort to avoid a foreclosure.  Hypothetical scenario: you have had trouble making your monthly mortgage payments, and you may have even received default notice.  You find out that you qualify for a short sale.  When the buyer purchases the home, the actually receive a discount on the home.  Basically, although the lender doesn't get the full value of the property, they get to simply cut their losses and move on.  They are in the business of lending, not selling.

The short story is that a short sale can actually be lengthy and very complicated.  There is more paperwork involved in a short sale than for a typical sale.  Still, if a buyer qualifies and the lender agrees, it can be viable option that benefits all parties involved when a seller faces some difficult decisions.

As a real estate agent in Chesterfield, Virginia I have experience helping clients with short sales and, as always, it's my number one goal to help the client navigate the sales transaction smoothly.

If you have found that you may be facing the possibility of foreclosure, you can reach out to your trusted Realtor® or real estate lawyer to explore further.  A short sale can affect the seller and may not be the best option.

Since the recent housing bust, short sales have become more common and can be a great way for the borrower and the lender to part ways amicably.

Final word?  Don't sell the the short sale short.  

(I promise, I'm not always so punny, but that was fun!)