What is a Short Sale? A short sale is when the net proceeds from the sale of a house does not equal enough to pay off the mortgage or mortgages. In a declining market this scenario can happen if someone buys there home at the peak of a market and then is forced to sale their home in the declining market. Why a Short Sale? If unforeseen circumstances such as loss of job, divorce, increasing interest rate, death, or other financial hardships which causes you to have trouble making your monthly mortgage payments a short sale may be your best option. This can be a win win situation for both the seller and the bank. Banks don't like to lose money but they can cut their losses by accepting a short sale instead of pursuing the up to a year long foreclosure process. The seller can prevent their credit score from taking a major hit by avoiding a foreclosure.

What are the reasons for people needing to sell their home for for less than they owe. (Short Sale) There could be a number of factors, but some of the more common ones are; Death, Divorce, Adjustable Rate Mortgages, or changes in job status. How do you get approval from the bank for a short sale? A good real estate agent who specializes or has experience with short sales can walk you through the process. Each bank works a little differently but you have to remember they are not in the business of owning houses and a bank can save money by accepting a short sale as apposed to foreclosing on a home. Can you pursue a short sale if the bank has started to foreclose? Yes, the foreclosure process can take up to a year and a short sale can happen any time before the home goes back to the bank. What if I have more questions? Call me at 612-986-2246 or email me at markaduffy@comcast.net  with any questions or for a confidential consultation. Mark Duffy Keller Williams Integrity Realty markaduffy@comcast.net    612-986-2246