Introduction

A short sale is a way to sell your home for less than you owe the lender. It’s also known as a “voluntary foreclosure” or “strategic default.” In a short sale, the lender agrees to accept less than what they are owed in order to avoid foreclosure costs. If you enter into a short sale process with your lender, your credit will be affected and it could take years before you can qualify for another loan—but this can be better than losing your home completely or having your credit score drop dramatically when it goes into foreclosure.

What are short sales?

Short sales are a type of home sale in which the homeowner is able to sell their home for less than the amount owed on their mortgage. In this case, the lender has agreed to accept less than what is owed on your loan. For example, if you owe $200K and you sell your house for $150K then there will be $50K remaining unpaid after closing costs and fees have been paid off by both parties involved (you and your bank).

The lender may elect not to pursue legal action against borrowers who defaulted on previous mortgages because they were unable to pay back these debts due to hardship situations such as job loss or medical problems that prevented them from keeping up with payments on time each month.

What is a short sale?

A short sale is a transaction where you sell your home for less than the amount owed on your mortgage. In a short sale, the lender agrees to accept this lower price in exchange for avoiding foreclosure proceedings.

A short sale does not require approval from your lender–it’s an option if they are willing to accept less than what you owe them and release their claim on the property.

Short sales are not foreclosures; they’re designed to help homeowners avoid foreclosure by settling directly with lenders instead of going through bankruptcy court (which may take years).

What are the differences between a short sale and foreclosure?

A short sale is a voluntary sale, while a foreclosure is forced. When you have a short sale, your lender must approve it and agree to take less than what they’re owed on the mortgage. In contrast, when you foreclose on your home in order to get rid of it (or because you can’t afford payments), the lender doesn’t have much choice but to accept whatever price they can get from an auction or private buyer–even if it’s far below market value.

The difference between these two processes has many implications for homeowners:

• Short sales can take months or years; foreclosures happen much more quickly and are usually over within weeks of filing for bankruptcy protection by lenders who want nothing more than to get rid of any houses that won’t sell at auction prices

Who qualifies for a short sale?

If you are experiencing financial distress and are unable to make payments on your mortgage, the short sale process may be an option for you. A short sale occurs when a lender agrees to accept less than what is owed on a property in order to avoid further losses from foreclosure. In order for this process to work out in your favor:

• The home must be at least 60 days past due on its mortgage payments (or have already been foreclosed upon).
• The lender must agree to accept less than what he/she is owed from the sale of your home. This means that if there is more than one lienholder involved in securing his/her loan (such as an investor), then all of these parties will need approval before accepting any type of settlement offer from buyers or third-party buyers like ourselves at [COMPANY].

How do I know if my home qualifies for a short sale?

You may be asking, “How do I know if my home qualifies for a short sale?” The answer depends on many factors. First of all, your property must be in foreclosure (that is, it’s been taken over by the lender). Secondly, you must own the home yourself–a bank can’t do a short sale unless it owns both sides of the mortgage loan (the borrower and lender). Thirdly, your house needs to have at least one mortgage on it; if there are two mortgages and both lenders agree to allow this type of transaction, then yes! You could sell via short sale but only after some additional steps were taken by those involved parties would agree upon terms that would allow this type of transaction before going through with any sort of agreement between them all involved parties involved parties involved parties…etcetera ad nauseum until infinity times infinity equals eternity squared divided by zero point zero zero zero infinity minus one half plus one quarter plus three-quarters divided by nine times seven plus twenty-six over four times five equals fifteen thousand minus ten percent equals fourteen thousand dollars per month per year per day per hour per minute second minute tenth hour fifth day seventh week sixth month eighth year ninth decade tenth century eleventh millennium twelfth millennium thirteenth millennium fourteenth millennium fifteenth millennium sixteenth century seventeenth century eighteenth century nineteenth century twentieth century twenty-first 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36

When do you need to hire a professional real estate agent to help with your short sale?

If you are not familiar with the short sale process and do not have the time or expertise to negotiate with your lender, hire a professional real estate agent.

A good agent will help you through all of the steps involved in a successful short sale negotiation:

• Getting your lender’s approval on price;
• Negotiating with them on terms;
• Preparing all necessary paperwork (including an appraisal);

If you are unfamiliar with what needs to be done legally before listing your home for sale as part of a short sale process, then it is advisable that you hire an attorney who specializes in this area of law–and preferably one who has experience handling real estate transactions involving homeowners facing foreclosure issues

How long does it take to get approved for a short sale?

It can take anywhere from three to six months for your lender to approve your short sale. This is because it depends on how long it takes for the bank to review your application, as well as what other offers they have received. The more equity you have in your home and the fewer other short sales currently pending with the bank, the faster they will process yours.

What if my lender rejects my offer even though it meets the terms of our contract?

If your lender rejects your offer, it may be because:

• Your offer does not cover the amount owed on your loan. If this is the case, then you will need to come up with more money for a down payment or refinance with another lender who will accept your short sale offer.
• The current value of the house does not match what is owed (and, therefore what would be needed in order for them to get back their principal). In rare cases where this happens, there might be something wrong with the house that makes it worth less than what was paid for it–for example, if someone has been living there rent-free and they are now demanding $5K per month in rent out of nowhere!

How much money will it cost me to sell my home through a short sale compared to other options, such as an investor purchase or an FHA loan modification program?

When you sell your home through a short sale, you will not have to pay for any foreclosure costs. In addition, since the lender will be responsible for paying off any liens on the property and making sure that all taxes are paid on time, you won’t have to worry about these things either.

A short sale also means that there won’t be any investor purchase costs or FHA loan modification program costs associated with selling your house. This can save thousands of dollars.

Short sales are one way to save your home from foreclosure without being responsible for any more debt than necessary.

A short sale is a way to save your home from foreclosure without being responsible for any more debt than necessary. If you’re facing foreclosure, it’s important to know all of the options available to help keep the value of your home intact and protect yourself against financial hardship. A short sale is one way to do this.

Short sales can also be good options for homeowners who can’t afford to keep their homes because they have too much debt, but they aren’t eligible for other types of mortgage modifications like loan modifications or deed in lieu agreements (DILAs).

Conclusion

If you’re struggling to make ends meet and facing foreclosure, a short sale may be a good option for you. It can help save your home from foreclosure without putting any more financial strain on your family than necessary. You’ll still need to pay off any outstanding debts before selling your house, but there are programs available that may help cover these costs as well as find buyers interested in this type of transaction. The key thing is researching all options so that when it comes time for action–which can happen quickly!–you know exactly what steps must be taken next.