What is a Short Sale? (Seller Version)

By
Real Estate Broker with Long & Foster REALTORS®, Gainesville, VA VA License # 0225089470

What is a Short Sale?  You've heard the term on news programs, seen it in ads for homes, and still wonder, "What is a short sale?"

A short sale occurs when a home seller owes more on their mortgage(s) than they will get for the sale of their home.  In other words, market value of the home is below what is due the mortgage holder.  There will be a shortfall on repaying the mortgage, therefore the mortgage holder(s) will need to approve the sale and accept the short repayment.

A short sale can be a great alternative to foreclosure, for those who find that their mortgage payments have become unaffordable, and may have begun missing mortgage payments.  In the Commonwealth of Virginia it is estimated that banks spend an average of $50,000 in attorneys fees to foreclose on a home.   A short sale will transfer ownership of the home to the buyer without that legal wrangling and cost.  All you need is the approval of the mortgage holder, accepting the short fall of the loan repayment.  You can see the financial savings of short sale to a bank versus foreclosure.

You don't need to miss mortgage payments in order to qualify for a short sale.  Short sales are also useful for sellers who are being forced to transfer to another state, or Country, by their employer.  A job transfer is considered a hardship by most banks.

If you think you may have to list your home for short sale, find an agent to represent you who understands the process of short sale approval, and short sale contracts.  An agent with a proven track record of success in closing short sales will know exactly how to help you through the process and will increase the odds of a successful short sale settlement.

Posted by

Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header photos taken by Chris Ann Cleland.

The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Joyce Stokes 02/17/2010 07:27 PM
  2. Anne Clark 10/01/2010 01:32 PM
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Topic:
Home Selling
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Short Sale REALTORS®
Short Sale Support Group

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Rainer
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The Ross Team Fort Collins Real Estate
CDPE
Prudential Rocky Mountain REALTORS

This is one of the best posts about short sales I have come across...I am looking forward to reading your entire series and subscribing to your blog.

August 25, 2009 08:32 AM
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Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Thanks.  As you can tell, I am immersed in short sales. In my market, I don't have much of a choice.

August 25, 2009 11:05 AM
Rainmaker
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Anne Clark
Metro Referrals

The more you can educate the public about short sales, the better off they'll be.  I can't believe there are still people running around not knowing what they are.

October 01, 2010 01:25 PM
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Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Anne:  I find that there is still a bit of ignorance on the subject, but not nearly as much as when they first hit our market.

October 01, 2010 01:46 PM
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Chris Ann Cleland

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