Short sales help homeowners get their heads above water if they owe more than a property is worth. Here’s how they work.
A lot of people have been starting to ask me about short sales recently, so I wanted to take the time today to explain them a little bit.
A short sale is when a seller has a mortgage out on a property and still owes more than what the property is worth.
“Nobody plans for it to happen, but it does.”
Let’s say a seller bought a home for $500,000 and still owes $500,000 on it. If the house is only worth $450,000 in today’s market, then they would still be considerably short of what they owe the bank if they chose to sell.
Homeowners can climb out of their negative equity positions if they can keep making their payments, but a lot of people come to me with friends and other family members they know who are underwater on their home. Nobody plans for it to happen, but it does. That’s just a fact of life.
If you or someone you know is underwater on their home and would like to talk about the possibility of a short sale and if it might be a good idea, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.