Can You Really Sell for LESS Than You Owe?
The short answer is Maybe. Selling your house for less than you owe on your mortgage is not a simple task. As you can imagine, your lender is not too eager to let you sell your house for less than you owe because they are in the business of lending money to make more money, not lose money. When the bank allows you to sell your house for less than you owe, that is called a short sale. Despite the name, short sales are not a way to sell your house fast.
So, why is the answer “maybe” and not Yes or No?
The answer is Maybe because the lender(s) MAY BE willing to accept a reduced amount when you sell. Why would they agree to that? They might agree if you, as the owner of the property, can prove a “hardship” that is so bad, the lender will be willing to settle for less than the current loan amount. You must have a legitimate hardship. Maybe you’ve experienced major medical problems, a divorce, a job loss, maybe a death in the family, or major financial problems; there are many situations that may qualify as a hardship. Or maybe your payment adjusted and the value of your house has declined.
Who can I contact about a short sale?
Typically in every market there are real estate agents and real estate investors that specialize in short sales. It is a very time consuming and tedious process to complete a short sale, so contacting a professional is in your best interest. In most cases, the services of the agent or investor are free to you, the homeowner. If you look in your local classifieds under “We Buy Houses” in the real estate services section, you can find investors that are looking to buy and negotiate a short sale on your behalf. Contact us about your Arizona short sale.
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