Category:Short Sale 101 REOPro Certification Training
A short sale occurs when the sale price of a home is insufficient to pay off all outstanding liens and associated required closing costs. If the buyer is unwilling to increase the purchase price and the seller is unwilling or unable to advance the additional funds to make up the difference, then the sale will not usually proceed to closing without special arrangements. In this instance, the seller may ask all or some of the lien holders to release their lien for less than the full amount owed.
1. Verifiable long term (3 months or more) financial hardship.
1. Less expensive than the legal process of foreclosure.
1. Retain some dignity in knowing that you sold your home.
2. You won't suffer the social stigma of the "F" word: foreclosure.
3. No mortgage payments to make, unless you choose to make them.
4. You can meet the new owners.
5. You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 years.
6. If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you will be eligible to buy another home immediately.
1. Waiting for the bank to respond to an offer is frustrating.
2. The bank will want to examine personal records such as tax returns, bank accounts, assets and liabilities, in addition to asking for a hardship letter from you.
3. Accommodating buyers will mean keeping your home in spotless condition for weeks or months until an offer is received and putting up with traffic through your home.
4. There is no assurance the bank will accept a short sale offer.
5. The derogatory credit will remain on your credit report for 7 years.
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