What is a Short Sale?
A short sale occurs when your lender agrees to accept an amount from a buyer that is less than the current balance on your mortgage loan. If you currently owe $175,000 on your mortgage and the lender agrees to a sale price of $150,000, a short sale has occurred.
Qualifying for a short sale is a complex process that is best handled by experienced, accredited agents. Everyone on The Bittinger Team has earned the Certified Distressed Property Expert® (CDPE) designation and is able to help you understand the short sale process. The general requirements for sellers who are considering a short sale are:
- Financial Hardship—You are unable to afford to pay the mortgage due to loss of income, large medical expenditures, divorce, death of a family member, illness or job transfer.
- Monthly Income Shortfall—Your expenses exceed your income to the point where you are (or soon will be) no longer able to pay your mortgage.
- Insolvency—You must show the lender that you do not have enough liquid assets (which can be converted into cash) to pay your mortgage.
If you are interested in a private, confidential conversation about short sales, email firstname.lastname@example.org or call us at (734) 459-2600.