What Is a Short Sale?

What Does It Mean To Short Sale a House?

 

If you’re looking for the simplest short sale home definition, let’s start here: A short sale occurs when a homeowner sells their home for less than the amount that they owe their mortgage lender.

Many people have heard of short sales, but don’t always understand exactly what they’re for or how they work.

This video explains the short sale basics in an easy-to-understand format. After watching it, you should know:

  • The basic definition of a short sale
  • How a short sale works
  • Basic requirements to qualify for a short sale

There’s a lot of misinformation out there about short sales, and you may still have several questions after watching the video. Will a short sell affect your credit? Will you incur tax penalties if you short sell your home? Are there other benefits to choosing a short sale vs. a foreclosure? At Short Sale Cooperative, we’re short sale experts with all the answers to these questions. We’ve helped thousands of homeowners recover their financial stability by short selling their homes.

What is a Short Sale?

Video Transcript

When a homeowner has an underwater mortgage, meaning they owe more on their home than what it’s worth, their lender may allow them to sell the property for less than the mortgage balance, by accepting a short sale.

A short sale allows the homeowner to sell their home to a buyer – not back to the bank – helping them avoid a foreclosure that would be damaging to credit and the ability to buy another home in the future.

To qualify for a short sale, you must meet three simple requirements:

  • One, you must have a verifiable financial hardship to explain why you are unable to make your mortgage payment;
  • Two, you must prove to your lender that you don’t have the cash or assets to pay off your mortgage balance;
  • And three, you must prove that your monthly expenses – including your mortgage payment - exceed your income.

If you want to determine if you qualify or if a short sale is right for you, contact the experts at Short Sale Cooperative for a free consultation today.

Contact us today at (800) 704-6411

Our expert mortgage counselors can help you decide if a short sale is right for you.

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(800) 704-6411

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