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

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Real Estate Broker 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

 

 

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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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
466,935
Janice Roosevelt
OICP ABR, ePRO,Ecobroker
SUSAN MANNERS TEAM, Berkshire Hathaway Home Services Fox & Roach

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
976,587
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
1,802,899
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
657,327
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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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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