Definition | realestateroadkillusa.com

A short sales definition is best described as a sale of real estate by which the sale total falls short of the balance owed on the home’s mortgage. This often happens when a buyer cannot repay the home loan on their house, however the financial institution decides that offering the house at a reasonable loss is better than foreclosing on the home owner. Typically, the only technique to selling a house with little or no equity (and preventing a potential foreclosure) is by short selling the house to an investor or end-buyer.

Short Sales Definition | How does it work?

A Short Sale usually consists of an investor (buyer), working with the homeowner to negotiate with the homeowner’s mortgage company. The motive of these negotiations should be to delay an approaching public auction and also negotiate a reduced payoff for the home mortgage (or mortgages). Utilizing this kind of solution, the property or home might be purchased for a lower amount than is owed and a home foreclosure can be avoided.

Short Sales Definition | Who should short sell?

How do you determine if a short sale needs to be done on a home? Below are a few simple steps for determining whether or not a short sale is a viable option.

Determine your property’s value - To know if your property is upside down or if there is enough equity in your home you will need to figure out what your house is worth. Typically you can have a REALTOR or real estate broker look at comparables (comps) to get an idea of what your home is worth in today’s market.
Add in closing costs - Once you have determined how much your home would go for, you will need to subtract the REALTOR commissions, closing costs, seller concessions, and possibly repair costs from the estimated property value. This number can be as high as 15% of the total value of your home.
Calculate your equity - By taking your home’s current market value and subtracting the closing costs listed about you will arrive with a number that you would be walking away with if you were to sell your home with a REALTOR. Now, take that number and subtract the amount that is owed on your mortgage (or mortgages) and any other liens on the property. This is your equity. If it is positive, congratulations! If the number is negative then that number is the amount you would have to pay at closing to sell your home with a REALTOR right now.
Figure out your financial situation - If you are already behind on payments or will be soon and you have no equity or negative equity on the home then you are likely a good candidate for a short sale.
Contact a real estate professional - If you determine that a short sale is a possible solution for you then contact a real estate professional (i.e. an investor or REALTOR with short sales experience) to walk you through the next steps in the process.

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Short Sales Definition | Closing Thoughts

Facing foreclosure or even going through a short sale can be a very difficult time in a homeowners life. But don’t just stick your head in the sand and hope your problems will go away. Seek out the help of a professional with the skills and experience to help you through your situation. Personally I have conducted over 1,000 short sales in the last few years and would be happy to assist anyone through their trying times.

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Phill Grove -
About the Author:

Phill Grove has conducted approximately $200M in real estate transactions – using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods – many of which he invented and/or pioneered for the industry. Phill has invented a new strategy called the Mortgage Assignment Profits System. Phill Grove has personally trained and coached hundreds of Real Estate Investors on the “12 Ways to Buy and Sell Real Estate”, as well as marketing and lead processing strategies that actually work. Find out more about Phill at http://www.REIMaverick.com

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I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
What are tax implications of short sale ?
What are the repercussions of a short sale ?

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Phill Grove has conducted approximately $200M in real estate transactions ? using non-traditional investing methods such as mortgage assignment, short sales, equity partnering, auction-options, wraps, swaps, and other methods ? many of which he invented and/or pioneered for the industry. Phill has invented a new strategy called the Mortgage Assignment Profits System. Phill Grove has personally trained and coached hundreds of Real Estate Investors on the “12 Ways to Buy and Sell Real Estate”, as well as marketing and lead processing strategies that actually work. Find out more about Phill at http://www.REIMaverick.com

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Feb 07 2011

Looking for a Simple Short Sale Definition? Here It Is!

Posted by Usual in Short Sales, tags: Definition, here, looking, Sale, Short, Simple

Looking for a Simple Short Sale Definition? Here It Is!

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Home Page > Finance > Real Estate > Looking for a Simple Short Sale Definition? Here It Is!

Looking for a Simple Short Sale Definition? Here It Is!

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Posted: Aug 18, 2010 |Comments: 0
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The easiest short sale definition is that a short sale is a situation where your mortgage lender agrees to let you sell your house with the stipulation that, once the house is sold, your business agreement is fulfilled.

In other words, you won’t have to pay a penny more on your mortgage and the lender won’t have to deal with the costs of a foreclosure and of maintaining and then selling your house later. You must hire an educated short sale Realtor in order to accomplish this though, or to get a full understanding of what any additional ramifications you might have, due to your circumstances.

The thing a short sale isn’t is short—doing a short sale doesn’t mean your house automatically sells in a few weeks. It can take as long as a year to get a deal! But, in the meantime, you’re living in your house rent-free. And that can be a huge relief to people with underwater mortgages or others who are having trouble making payments.

And with this economy, a lot of us fall into one or both of those categories!

Now, there are some limited circumstances where you might want to choose to stay in your house and keep paying your mortgage, even if that mortgage is under water. If you can afford the mortgage and you’re less than 10% underwater, you may well recoup your property value over time. (And we do mean, “over time.” We don’t see it happening quickly!)

Likewise, if you’re close to the end of your mortgage, why would you want to short sell and walk away from all of the money you’ve invested in your house? Whether or not property values in your area ever bounce back, if you stay, you will have a place to live. If you short sell, you’ll be starting all over again.

But if you don’t fall into those limited exceptions, then a short sale may well be the way for you to go. There is no reason you should struggle with your mortgage until every bit of your savings are gone and you’re being foreclosed on anyway! That option leaves you with no money in the bank to start over with and with nowhere to live.

The first thing you need to do to prepare for a short sale is to find and hire a Realtor who specializes in them. Whatever you do, don’t let your lender choose the Realtor!—you want someone who is looking out for your interests not your lender’s! It will be your Realtor’s job to work with you to set the listing price for your house. And it will be your Realtor’s job to negotiate the deal so that your lender agrees to accept the purchase price of your house instead of the amount you own on your mortgage.

You may have to be persistent. In fact, you can almost count on it. While times are changing because of millions of foreclosures, there are still mortgage lenders out there that are stuck on the idea that they can squeeze homeowners for every last penny on their mortgages.

But if you’re persistent and prepared, at the very least you’re buying yourself time before a foreclosure can start. And while you’re negotiating for a short sale, you’re living in your house payment-free!

Before you consider foreclosure, then, have your Realtor try to negotiate a short sale with your mortgage lender. A short sale, by definition, makes sure that everyone wins—at least a little bit.

Please don’t worry about how to find an experienced, certified short sale Realtor in your neck of the woods. Just contact us and we’ll be happy to help you!

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Bud Gragg -
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Bud and Kristin Gragg have over thirty years of Real Estate sales, investing, and development experience combined, they have just survived liquidating over 24 million in underwater investment Real Estate and their incredible story needs to be heard by millions right now. Go To: http://www.TheUnderwaterMortgage.com where you can get a FREE Special Report “Underwater Mortgage Secrets: What the Banks Don’t Want You to Know” Just for stopping by!! If you or anyone you know is Underwater in their home or any of their investment properties - the information on http://www.TheUnderwaterMortgage.com is an absolute must!

Bud and Kristin Gragg
The Underwater Mortgage
101 N Coloradro St Suite 2710
Chandler AZ 85225

480-497-5600

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I was denied a Hamp mod due to NPV caculations. My lender will not explain these terms to me. They said they cannot help me. I need to short sale and get out. Can u please help me
What are tax implications of short sale ?
What are the repercussions of a short sale ?

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