Short Sales
Short sales are a type of real estate transaction that is fairly new to the real estate world. Unlike a regular transaction, a short sale can take more time and involve more than just the buyer and the seller. So what is a short sale? And, more importantly, is it right for you?
Please visit my Minnesota Short Sale website for more information.
Overview of Short Sales Transactions
A short sale occurs in the real estate market when your home is close to foreclosure. If this is the case, you may be able to sell your home on the real estate market for less than what you currently owe to the lending company. A lending company will get an appraisal of the house to see how much the market difference is between the offer and the value. If the lending company agrees to take the offer, then you have just made a short sale transaction. Short sales occur more often than ever before due to the large number of foreclosures in the Minnesota area. However, the process is confusing and the lending company must agree to your terms, which is where a MN real estate agent comes into play.
Here is an example of the steps involved in a short sale.
- Let’s say you owe $150,000 on the house but you simply cannot pay this back in the increments agreed on and thus your home may be foreclosed. A Minnesota real estate agent can help you find a buyer and fast and write up a contract. Let’s say you get an offer on the house for $125,000.
- As the seller, you will need to write a letter explaining your situation and why you need this short sale.
- The lending company will contact an appraiser to review the property in distress and determine if this is a fair offer. If the appraiser agrees that the market value on the house is around this price, then the lending company may agree to take the $125,000 and ignore the additonal $25,000 you owe on the house.
- As the seller, you get a clean slate and do not lose your home. The buyer gets an excellent deal on a home and the lending company can avoid foreclosing a home and undertaking the hassle of reselling it. In the end, everyone wins.
Is Short Sale Right for Me?
The short sale process is not a simple one and it can take up to 100 days or more to close a deal. However, with the right CDPE real estate agent in Minnesota, you can find the buyer, negotiate the price and determine the outcome of the lending company a lot faster. Furthermore, a MN real estate agent will do all the dirty work and follow up for you. You can concentrate on moving forward with your life.
A short sale may be your best bet if you are currently having troubles with paying the mortgage. If you have already received the notice of disclosure and must evacuate the premises within 30 days, then it might be too late. However, as soon as you start having trouble and foreclosure is in the picture, it is best to contact a MN real estate agent to see if a short sale is your best option.
Avoiding Foreclosure – Benefits to Short Sales
Short sales allow you to avoid a foreclosure which can mean you can walk away from a very tough situation. Below are three additional benefits to short sales:
- Your credit report will not suffer in the same way it will if accepting a foreclosure.
- You are avoiding the guilt, shame and embarrassment that often comes with accepting the fate of a foreclosure
- You are walking away without a debt – you can start again, and, with a little luck, have enough for a second down payment in a couple of years.
Short sale transactions may not be the preferred option but they certainly are a step up from accepting the fate of foreclosure. If you are worried about foreclosure of your family home, contact Kris Lindahl today to see if a short sale is the best alternative for you.
