Short Sales Explained

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. Recent 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.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.  All members of Yost Realty Group have been trained by the Distressed Property Institute and several Realtors of our team have earned the CDPE® Designation as well.

If you have questions or feel you may qualify for a short sale, please contact us for a free consultation.

Understanding your options now could mean all the difference in the world.

What Our Clients Say About Working With Us On A Short Sale... 

"Making the decision to short sale our home was very personal and emotional for us. We, like many other American's were faced with lower wages due to the economic turn and simply could not afford to keep the home that we had custom built for our family. The team at Yost Realty Group was very empathetic, understanding and took the time to explain the whole process and answered all of our questions. They also gave us very helpful tips on how to get our house market ready and provided information on what to expect next so that we were fully prepared when the house sold. This all made the process very painless." - Leann, Casa Grande, Arizona 

"Marsha, Carolann and Tracy were great! When I thought foreclosure was inevitable and was ready to throw in the towel, they continued working hard for me and got my house sold." - Mark Aston

"I have never had such a comfortable buying and selling experience." - Bill Witt

"Yost Realty Group made it so easy to get our short sale completed. I may have to have them fly to the next place we decide to buy a home." - Michael Burtchell