A very good question. Also known as a “short payoff”, a short sale occurs when the lender allows a home to be sold for less than the existing loan balance. A short sale can be considered a pre-foreclosure sale, where a cash-strapped homeowner can avoid the stigma of foreclosure and get out from under a mortgage that cannot be paid due to unforeseen financial circumstances, the home’s physical condition or local real estate market conditions. Nationally, in January 2010, nearly 16% of all sales were short sales.
Short sales are extremely complex and time-consuming, and are referred to as “long sales” around our office. A Seller can expect an inordinate amount of paperwork and documentation to be required. Every lender is different, using varying formulas to make their decisions. A Buyer may possibly benefit from negotiating a short sale by getting a discounted price for the home. Patience by all parties is needed as it can take anywhere from three to twelve months to negotiate and close a short sale. A qualified Realtor® can be an important part of your equation.
Short sales and foreclosures are indeed becoming part of today’s real estate landscape and RE/MAX of Boulder agents have been busy taking classes and earning professional training such as Certified Distressed Property Experts (CDPE) and the Short Sales & Foreclosure Resource (SFR) designations. Our office has over 40 Agents trained in this area and they are willing and able to help in any situation. If you find yourself between a rock and a hard place, feel free to give us a call, we’re available seven days a week.
To view a short video on short sales and the new government HAFA plan, click here: http://tinyurl.com/24wo5ev
Feel free to call us at 303.449.7000 or 800.825.7000 or visit http://www.BoulderCO.com