What is a short sale?  When a home owner owes more on their home loan than what their home is currently worth, they sell their home with the approval of the lender for an amount that is "short" of the full amount owed.

 

Are lenders willing to offer a short sale?  Yes, it is very common in our current housing market.  If a homeowner is unable to make their payments, it will usually cost the bank far more to foreclose on a home than to agree to a short sale. 

 

What are the benefits doing a short sale instead of a foreclosure?  There may be positive implications to your credit, legal situation, and how long it will be till you can purchase another home.  Take a look at this Short-Sale VS Foreclosure Flyer that compares the differences side by side.

 

What are the restrictions to doing a short sale?  Lender's do not offer short sales in every situation.  They usually want to see that there is a hardship that the homeowner is experiencing that has reduced their ability to pay on their loan.  Possible hardships can be job loss & pay reductions, medical emergencies, divorce, etc. 

 

How long does it take to do a short sale?  Despite the name, short sales are generally not very short when it comes to time.  Each short sale's timeframe depends on each lender, how many lenders (some homes have a 1st, a 2nd, and an equity line), and the proactiveness of the Realtor and Seller.  Best case scenario?  It could take just a few days more than a regular sale.  Worst case scenario?  It could take more than a year.  So far, the Short Sales I've done have taken less than 3 months. 

 

What if my home has a "Notice of Default" or "Notice of Trustee Sale" and is about to be foreclosed?  In most situations, the lender will postpone the foreclosure date if they are interested in a short sale solution. 

 

If you live in the Sacramento area, and would like to find out more information about whether or not a Short Sale would work for your situation, please contact me (916 284-8744) for a free consulation.  I live in Rancho Cordova, and my office is located in Citrus Heights / Fair Oaks.

 

Please share this information with anyone you think could use my help!

 

Here is a graph showing the amount of short sales currently in Sacramento:

 

Each of these graphs show the amount of short sales in the area where I live and work: Rancho Cordova, Fair Oaks, Citrus Heights, and Folsom: