Most people by now have heard of short sales and know that they can serve as a favorable alternative to foreclosure. However, despite the increasing popularity of this term, it is still a concept that is very much so misunderstood by the general public. Short sales are something that we may be seeing a lot more of in the next couple of years so is is important that the general public be educated about the ins and outs of short sales.
Short Sales Defined
In simple, a "short" is when the mortgage amount owed on the property + commissions + closing costs = more than current market value of home.
An actual "short sale" occurs when the borrowers mortgage company/ies negotiates to accept a sales price that is less than the full balance of the loan at closing. When the home closes and is sold to the new buyer it is said to have "sold short".
Just because you owe more on your home than what it is currently worth does not mean you are elligable for a short sale. In order to qualify for a short sale you must meet the short sale criteria.
For more information about short sales and foreclosure alternatives in and around Knoxville, TN visit www.KnoxvilleShortSaleSpecialists.com. Christine McInerney and Jennifer Halinkowski of The McInerney Team of Keller Williams are both CDPE (Certified Distressed Property Experts) and we can help.