I know that you came into this article probably confused about what the whole deal regarding short sales is. I mean, what does a short sale even mean? When is a sale considered short? If there’s a short sale, does that mean there’s a long sale? Well, no silly. There’s no such thing. An overpriced sale, there may be. But a long sale is not just the way to term it.
Today, we’re going to talk about short sales – and practically everything else related to them. I hope you’re in for the ride.
What Are Short Sales?
Before we even begin discussing the literal meaning of short sales, let us first discuss the events that can lead to a short sale.
Many of us belong to the working class of society. We spend our days trying to earn our keep and what we earn is neither too much nor too little – but enough. Unlike big shot superstars or multimillionaire business tycoons, we cannot buy properties (e.g. houses, buildings, land, etc.) at the drop of a hat. Most of us need to work our lives off trying to afford a single house. Also, many of us bind these properties with a mortgage from either a bank or a financing company. We do this in order to make use of the benefit of time; to extend our deadlines and divide our payables into doable amounts. However, we never know what life has in store for us (read more).
For instance, a person may lose his job abruptly. His company can close down in a moment’s notice leaving him, as well as all the other employees, without a job. Or, a person can get into an unprecedented accident; disallowing him to do any type of productive work. What I’m trying to say is that many things can happen. But concerning where, when or how – well, we do not know. All we need to know is that everything can change in an instant. And that we must always be prepared for whatever comes after this change.
So say you lose your main source of income, does life stop there?
Sadly, it won’t. The world isn’t going to pause, let alone stop, and wait until your situation gets better. As they say, life goes on. Your bills, too, will go on. The mortgage loan you’ve signed with the bank isn’t going to disappear just because you’re in a rut. After all, it’s what you’ve agreed on. You’ve got to see it through.
But what if you can’t see it through?
This is the time short sales happen. Short sales, in other words, is selling the property “short” of its actual mortgage value (Check out: https://www.investopedia.com/terms/s/shortsale.asp). Say your actual loan sums up to $273,000.00 and you sell the property for only $200,000.00, then you are making a short sale. Usually, people won’t make a short sale for no reason. It is either they have become unable to pay off the debt themselves or they see another property that they are more interested in.
However, it is important to note that not everyone with a mortgage can make a short sale. In fact, there is a list of requirements to be met in order to qualify for a short sale. For one, the lender (the bank or financing company) must agree to the terms discussed in the short sale; they must also agree to the amount proposed. Making short sales work is quite challenging which is why professionals, like a San Diego short sale realtor, offer services for short sale assistance.
If you’re planning to put up your property for short sale soon, it would be wise to seek expert help and advice. There are many things to consider when making a short sale and there’re also requirements that need to be fulfilled. Seeking professional assistance is one way you can do a short sale without a hitch. Look for agencies that value fairness and confidentiality. It is important that while the short sale is being put in order, you and your family are still able to live conveniently.
Find a company that is knowledgeable as much as they are genuine. Good luck!