A short sale is when a property is sold for less than the amount owed on it. You may have heard the term “Upside Down” or “Underwater” used to describe a homeowner who has either negative or no equity in their property. Most Banks are willing to accept less money than owed in order to circumvent a costly foreclosure. (The banks do not want to take on added liabilities such as property maintenance and insurance risks.) The property is sold based solely on today’s value—regardless of how much money is owed on the mortgages!
When a bank forecloses on a property, the homeowner remains responsible for the difference between what the bank was initially owed and the foreclosed sales price. The bank secures this amount by putting a deficiency judgment on the foreclosed property owner. A bankruptcy action is often needed in order to rid yourself of this liability.
When you elect to do a short sale there is rarely any deficiency judgment, and you can begin to rebuild your personal credit and assets immediately!
In order to ensure an acceptable Short Sale transaction, you should be using an experienced SHORT SALE Broker. Many attorneys and large Real Estate box stores do not have the contacts or necessary expertise to adequately negotiate a SHORT SALE.
Ed Ryan Real Estate Group and their partners have streamlined the short sale process—using third-party negotiators and innovative software to market SHORT SALE properties at a predetermined price. Essentially, our negotiators can access the proprietary Minimal Acceptable Net Proceeds (MANP) from many banks, and use that data to expedite SHORT SALE ACCEPTANCE!
As bank parameters and rules are constantly changing, we encourage you to start the discussion now. Contact us today for more information about these programs—while they are still applicable.
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