Welcome back. We hope your weekend was great! We are gearing up for a new week of buying and selling and lots of great home information on our blog.
As this blog is still quite new, we would like to introduce you to a feature that will be a permanent part of our blog: Real Estate 101. Real Estate, like most professions, has a language that is all its own. If you aren't familiar with Real Estate vernacular, your buying and selling experiences might leave you feeling like a tourist in a country where no one speaks your language...and that is not a great feeling. We hope we can alleviate some of this discomfort by guiding you through the new and unfamiliar terms that constitute Real Estate lingo.
So let's start Real Estate 101 today, by learning about the term "Short Sale." Our friends at The Bittinger Team, explain the term "short sale" like this:
WHAT IS A SHORT SALE? "A "Short Sale" is the sale of a home for less than what is owed to the lender. For example, if your home is currently worth $225,000, and you have a loan in the amount of $260,000 and are unable to make your mortgage payments, then a Short Sale is certainly a consideration when there is proof of hardship and financial distress. Financial distress causes tremendous strain on families. It comes in many forms such as: job loss, debt, divorce, serious illness, medical bills or a death in the family. Many people do not realize that they are really "distressed", but as a result their family home may be in serious jeopardy. Often times people learn of "Short Sales" after it is too late, as they have attempted to face the hardship and heartache of their situation alone without any form of professional assistance." Many families are finding themselves in this situation as the current real estate market shows home values decreasing...they simply owe more money on their home than what it is worth. Sometime, a short sale is the only option. An advantage to a short sale is that sometimes it is possible to negotiate a deal with your lender where they will wave any additional amounts owing on the loan above the sale price. A disadvantage is that a short sale might affect your credit scores. Obviously, this is not an ideal real estate situation, but it helps to have a Realtor on your side that has acquired their "Certified Distressed Property Expert" designation or CDPE. This means your Realtor is familiar with all of the details that will make the sell of your distressed property less...well, distressing. We have both received our CDPE in order to help our clients through this process. If you have any additional questions about a short sale or if you think you might need us to help you through this situation, please contact us. |
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