Short Sales

Several years ago the term “short sale” was a term that was not as commonly known or understood as it today. Millions of homeowners are “under water” meaning that they owe more on their mortgage than their home is worth. There are several programs available to these homeowners and banks have been short selling properties because for the most part it is less expensive to short sale a property and take a loss than it is to foreclose.

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here’s a more official definition:

A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.

A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

Financial Hardship – There is a situation causing you to have trouble affording your mortgage.

Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation. I have done several short sales and successfully.

If you are “underwater” on your mortgage the best thing you can do is call me, call your bank or speak to an attorney and the worst thing you can do is nothing. The problem won’t go away.

Please check out the other links on this site and for further information please contact me.


Miriam Bernstein, CDPE


Previous Posts:

Writing the Hardship Letter

Recovering from a Short Sale

Mortgage Assistance Relief Services Disclosure
New Orleans Property Lady, LLC is not associated with the government and our services have not been approved by the government or your lender. If you stop paying your mortgage you could lose your home and damage your credit. Your lender may not agree to the change of your loan and/or a Short Sale. With a Short Sale, there are no guarantees offered and we cannot provide legal advice. Seek legal advice.”

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