Are Banks Willing to Sell Homes For Less Than the Mortgage Balance?

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

Are Banks Willing to Sell Homes For Less Than the Mortgage Balance?

Depending on the situation that faces a Seller who needs to sell for less than what they owe in their mortgage, the bank may decide to approve the sale and accept a short payoff of the mortgage.  This type of sale is known as a Short Sale

Banks don't approve Short Sales just because you want to sell because the value has decreased and you want out of the investment.  In general, there needs to be a circumstance that makes the sale necessary.  Financial hardship.  Loss of job or income.  Divorce. These are just a few reasons that a Seller may pursue a Short Sale with their bank.

If you find yourself in a position to pursue a Short Sale in Northern Virginia, you'll need an experienced Northern Virginia Short Sale Agent to help you through the process.  Without someone at the helm who's done this before, your chances of getting your Short Sale approved decrease.

I've been a Northern Virginia Short Sale Agent since 2007.  I've got the knowledge and experience you need to pursue the Short Sale of your Northern Virginia home.  Give me a call if you want to investigate the option of doing a Short Sale.

Chris Ann Cleland, Associate Broker-Licensed in VA, Long & Foster REALTORS®

703-402-0037, ChrisAnn@LNF.com, www.NVARealEstate.net

 

 

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Topic:
Real Estate General Information
Location:
Virginia Prince William County Bristow
Groups:
Short Sale REALTORS®
Short Sales Specialists
Short Sale Support Group
Virginia Foreclosures Short Sales and REO (and Pre-Foreclosures)
Tags:
northern virginia short sale agent
bristow va short sale agent
gainesville va short sale agent
haymarket va short sale agent

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Rainmaker
453,905
Jan Green
RE/MAX Excalibur Scottsdale REALTOR®, GREEN®
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills

Good for you for offering your expertise to help those less fortunate.  Kudos! 

November 20, 2011 08:03 PM
Rainmaker
1,230,602
Michelle Gibson
REALTOR
Hansen Real Estate Group Inc.

Chris Ann - You are definitely the go to short sale agent in Northern VA.  

November 20, 2011 08:10 PM
Rainmaker
967,213
Kevin B. Tolbert PA Team
New Home Construction and Luxury Specialist!
Keller Williams Realty of Port Saint Lucie

Way to go Chris Ann.  I just got a buyer from a nice couple who said their realtor would not mess with short sales but all the great bargains were short sales.  So they called me off my ACTIVE RAIN BLOG on short sales.

Thank you to all you realtors who still think short sales are not important business.  I will say thank you all the way to the bank.

 

November 20, 2011 08:48 PM
Ambassador
1,879,162
Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Jan:  I would be suffering if I didn't sell Short Sales in my area.  They dominated the market for two years and show no sign of stopping.

Michelle:  And you are my Short Sale sister in Wellington, FL.

November 20, 2011 08:48 PM
Ambassador
1,879,162
Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Kevin:  Amen to that! 

November 20, 2011 08:50 PM
Ambassador
530,976
Peter Pfann @ 1 Percent Realty Victoria, and Pay-Less For Victoria Real Estate Results!
Talk To Peter 250-213-9490 www.pay-lessrealty.com
1 PERCENT REALTY, Victoria BC www.1percentrealtyvictoria.com

Hi Chris,

Any part of thi busines requires expert skills an insight, altought we heve few if any short sales here in Canada,, if we did, we would know everthing about it so that our clients would be able to benefit from our skills...

Excellent information.

 

November 20, 2011 10:07 PM
Rainmaker
468,836
Janice Roosevelt
OICP ABR, ePRO,Ecobroker
Rory Burkhart Team, Keller Williams

Christ Ann, way to breat this down so we can understand this. Banks don't approve short sales JUST becuase the value of your home has declined.

November 21, 2011 08:19 AM
Rainmaker
1,050,822
Scott Godzyk
One of Manchester NH's Leading Agents
Godzyk Real Estate Services

Good Morning Chris Ann, Very good point that the banks will not approve a short sale just becuase the value has fallen, the seller must have a "hardship" to be able to be considered. SHort sales have come a long way in 2 years, i recently broke my own record with an approval in 4 1/2 weeks from start, so it can be done. Have a great Monday

November 21, 2011 12:09 PM
Ambassador
1,879,162
Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Peter & Linda:  If you are going to sell houses, you need to know everything you can about the current market conditions, that includes Short Sales down here.  Love your business ethics. 

Janice:  There has to be a REASON why you can't pay.  Some home owners don't get that.

Scott:  That's great!  Clearly the buyer was able to do their inspections and appraisal before getting approval too.  That's key to a quick turnaround.  It's not all on the Short Sale Listing Agent.

November 21, 2011 12:59 PM
Rainmaker
660,761
Pacita Dimacali
Alameda/Contra Costa Counties CA
Alain Pinel

Chris Ann

In California, 3 out of 5 short sales close escrow. So I guess the answer is most banks will approve a short sale, but that's based on a lot of IFs. Proving hardship is a critical factor. I've had people want to do the short sale even though they can afford to make the payments. They are complaining because their neighbors "walked away" from their homes, and they think they can do the same.

The other IF is if there will be an offer on the property. A property foreclosed because no one was interested in writing an offer. The sellers moved away and vandals started damaging the property; and besides, it had three loans which would have made it extremely difficult to sell. A $100K property with 3 loans is hardly worth the effort.

November 21, 2011 01:52 PM
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1,879,162
Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Pacita:  There are a lot of ifs in the world of Short Sales, but if a family needs to do it for legitimate financial hardship reasons, no price tag is too small for me to help.  I don't care how many liens there are.

November 21, 2011 04:33 PM
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Chris Ann Cleland

Associate Broker, Northern VA
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