A short sale is when a bank or lending institution agrees to take less than it’s owed on a debt. Example, you owe $200,000 on your current home loan and you need to sell but the property is only worth $175,000 in today’s market. This will be a $25,000 loss to you or in the case of a short sale to the bank.
What happens is the property goes up for sale and with an offer in hand you and or your agent try to negotiate with the bank to assume the loss. The bank will need from you a hardship letter, financial information, accurate and updated appraisal of the property to look at a short sale but this can be done.
To learn more steps on a short sale or how to get started with the short sale process please contact me at 612-282-7653.
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