SHORT SALES

When the proceeds from the sale of a property are insufficient to pay off the secured    loans – you have a ‘short sale’. Often this is done to beat the foreclosure but not always. As some people just need to move and the market is upside down.

Some lenders will not do short sales at all. However, the majority of lenders will consider a short sale but they usually have a pre-determined criteria and are slow to respond.

Frequently, multiple levels of approvals are required with short sales. There may be second mortgages, special assessment liens, mortgage insurance and other miscellaneous liens all of which will require additional approvals.

Because of the multiple parties frequently involved, short sale deals have a high failure rate when they are not handled by a knowledgeable and experienced professional.