Friday, February 17, 2012


The mortgage and real estate industry like some others have a language unique onto itself and to the everyday Joe/Jane some of the jargon might be unknown. I get asked a lot of questions and the other day someone asked me what is a short sale? It occurred to me you just can’t take for granted that most people know these things. So for all you folks out there that need a simple explanation;

A real estate short sale is when a homeowner owes more than the property is valued to the bank or lien holder than the property can currently sell. This property is “upside down” “underwater”.  A short sale can be negotiated by a third party or the homeowner with the lender at a discount on the payoff amount due to the mortgage company/bank/lien holder.

This is typically done for a homeowner who is behind on their house payment and facing foreclosure. It is best when the homeowner is 60 to 90 days late on their mortgage and has no alternative to settle up and not enough equity to sell fast.

Not all short sales are alike. It’s important if you are going through this you have an experienced
negotiator or you could end up with a deficiency judgment. Knowing upfront how your credit will be affected is important getting your lender to agree upfront is very important and should be a part of the negotiations. 

For more information or if you have questions please email or call me. 
If you need a referral to a short sale negotiator please call me.
Your comments are always welcome.

Roxy Redenbaugh
ACMC Loan Consultant
Branch Manager
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