Short sales have been in the news these days, and have been a topic of conversation in First Weber offices lately. They are unfortunately becoming more common. Maybe you know what one is, maybe you don’t. If you DO know what one is I bet you wish you didn’t…
What is a short sale? (and may you never be in this predicament…)
A short sale is a term most commonly used to describe a situation where the proceeds of the sale of a home will not be enough to satisfy all liens on the peoprty, including mortgage payoff, closing expenses, and possibly including an agent commission. The seller often has to BRING money to the closing. THAT is just NOT what people have come to expect when selling real estate.
Short sales may occur when the seller is in bancrputcy, or the mortgagee is foreclosing on the property or when the total of all liens on the property exceed what the property brings in today’s market.
If you absorb the news, you may have heard that if you are having trouble meeting your mortgage payment, it is best to contact your lender right away to work out a possible solution. If you are currently selling, it is also imperative for your to provide your First Weber agent with as much information as possible about whatever liens and encumbrances may exist against your property.