Sacramento Real Estate Views

Selling Your Home “Short”

Banks Becoming More Short Sale Friendly

With help from the federal government, banks are now becoming much more short sale friendly.  Over the last six months, the banks are responding more quickly and sales are going through to close rather than being lost to foreclosure.  This is a good thing for everyone and also makes it a viable option for people trying to sell their homes when they either can no longer afford the payment or have to sell due to a situation change.

What’s a Short Sale?

A short sale is selling a home when more is owed than the home is worth and must be approved by the borrowers lender.  Often, it is a better option for the lender if the borrower is facing a foreclosure situation as a home with an occupant is usually better cared for than one that is vacant.  This allows the lender to recover the most amount for the home to pay off as much of the existing mortgage as possible.  This is good for the lender, the borrower and the neighborhood.

Better Option for the Homeowner

Getting a short sale approved isn’t easy and there are many steps that the lender will require before the approval is given to sell the home for market value and less than what is owed.  However, it’s a better option than to have a foreclosure on the borrowers credit report.

Often, the lender will forgive the balanced owed and the borrower can start fresh.  That said, there are also those instances where the lender may seek to recover the lost balance.  Each situation is different

Handling a short sale on your own can be a very difficult task from an emotional and financial standpoint however it’s often better for everyone concerned.

Considering a short sale?  If you need some advice about how to get it done, please feel free to contact us.

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Tags: short sales in roseville, short sales in sacramento, short sales rocklin

This entry was posted on Tuesday, April 14th, 2009 at 5:00 am and is filed under Foreclosure Statistics, Real Estate Market Commentary, Rocklin. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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