Short Sales

The basic definition of a "Short Sale" is when the amount owned on a mortgage is higher than the value of the home. Therefore, there isn't enough money to pay the bank back -- i.e., you're "short" funds -- when you sell the property.

We continue to read about the foreclosure crisis in the country. However, many foreclosures have been averted when a "Short Sale" is successful. It benefits everyone involved when the only option is to go this route.

Ideally, this is an option for homeowners who a) may be having difficulty making payments; or b) have just started falling behind, because it can some times be a timely process -- especially if there is more than one bank involved. It is an option sometimes for homeowners who have had foreclosures proceedings initiated; however time is of the essence at this point.

The key to a successful transaction is that the lender must agree to accept less money than they are owed. Why would a bank do this??? Because they don't want to be in the business of owning your home. Banks lose money having to foreclose, possess and re-sell these properties. They can sometimes cut their losses before having to invest the additional time and expense required by the foreclosure process.

If you find yourself in financial trouble and you owe more than your home is worth, contact a Nothnagle agent to find out if a "short sale" is an option for you. Also, The Housing Council of Monroe County is a FREE service available to homeowners facing potential foreclosure. Call The Housing Council at 546-3700 or visit their website for more information.