Irving Tx Short Sales - What Is A Short-Sale?
Short Sale Specialist - Diego Marin, Realtor®
"Straight Talk.... Real Results"
Well, let’s first discuss why someone would need a Short Sale. Let’s say that things are going just peachy for you, you’re employed and although it takes two incomes, you’re able to cover your financial responsibilities and still have a little bit to put away. Suddenly one of the “financial” providers loses their job, or gets a life changing illness, making them unable to work. These are considered to be a life changing “hardships” in an otherwise normal situation. It often leaves one wondering; what happened?
Many homeowners in situations like this, overwhelmingly try to make “ends meet” on a single income, where before it took two. Friends …this is called “Pride & Denial”. After all, what would our family and friends say & think of us… right? Falling behind on the mortgage, bill collectors calling, threatening letters in the mail, and now facing the real possibility of Foreclosure is a crisis.
Millions of homeowners are in this very situation today. The possibility of losing one’s home, becoming “homeless”, has affected many families around the nation. While one may not want to sell their home, the inability of making the mortgage makes it almost a necessity. However, trying to sell a house in a “down market” is hard enough for professional Realtors, how much harder for someone doing it alone? So, what is a Short Sale and what does it have to do with me, right? Due to the current housing market, home values have plummeted. So trying to sell in today’s market would most certainly mean taking a loss. Lender are well aware of this, therefore they will consider allowing the homeowner to “sell short” of what is actually owed on the note. This is known as the Short Sale. For example, if you have a mortgage where you owe $100,000; but home values have dropped to $75,000; and someone offers to purchase your home for $70,000; if the Lender accepts the offer and it goes to closing, this is considered a Short Sale.
There are many variables that go into a Short Sale, like Do you have to be behind on your mortgage? Do I Owe the Difference of the Shortfall?. To gain a better understanding of Short Sales, be sure to also read my posts on Do I Qualify for a Short Sale? and What’s Involved In a Short Sale? Perhaps you may be able to help a friend or family member out of a national crisis.