Short Sale Your Home

A short sale is when a buyer makes an offer on a home that is less than mortgage payoff.  The buyer submits an offer and negotiates with the bank to buy the home for less than the loan balance.

Here is an example of how a short sale may work:

  • Home Value $300,000
  • Home Loan: $310,000

In order to pay closing costs, realtor commissions and other expenses involved in selling your home, you would have to price the home around $340,000 – $350,000. If a $300,000 offer price came in from a conventional buyer, you would have to come to closing with $40,000 – $50,000 of your own money to sell your home.

When you have little to no equity and you are facing foreclosure, this is one of your options to sell your home.

For homeowners who can’t sell their home because they have to either price their home too high to sell, or they have to come to closing with a substantial amount of money, the option of a short sale which would look more like this:

  • Home Value: $300,000

  • Home Loan: $310,000

  • Buyer’s purchase offer to the mortgage company: $240,000

The buyer makes an offer on your home for $240,000 – $260,000 and negotiates with the bank to accept the lower pay off.

The advantages of a short sale are…

  • Sell your home, when otherwise you might not have been able too.

  • Avoid foreclosure (which is credit catastrophes).

  • Homeowner doesn’t have to closing with a significant amount of money.

  • Stay in the home and save up money to move while negotiations with the bank are on-going.

The disadvantages of a short sale are…

  • A negative impact on the homeowners credit (mainly because of the late payments), a better option than bankruptcy or foreclosure.

  • There is about a 50% chance of the bank still foreclosing, usually due to bank mishaps.

  • You may receive a deficiency judgement or a 1099 for the bank’s loss.

Short sales can take 2 – 6 months, sometimes more and they are very complex and time-consuming transactions. Markette Properties has a processing team for Short Sales due to the immense amount of work involved in the process.

Contact us today to get started!