What is a Short Sale?
Video Summary
A short sale occurs when the buyer of a property gets behind on payments and, rather than enter the foreclosure process, he attempts to sell the property for less than the amount owed. “Short” refers to the difference between the sale price and the amount owed on the mortgage(s). Many properties are being sold as short sales now because of the recent dip in home values. MLS listings usually indicate when a property is a short sale. The lender must agree to the sale price of the property and agree to negotiate with the original buyer as to whether the debt will be given or there will still be a debt. The process can take a very long time to negotiate a sale price and terms that the lender, the borrower, and the new buyer can agree on.
- Published in Real Estate - Foreclosure, Videos
How Will a Short Sale Affect my Credit?
Video Summary
A short sale itself will not have as much of an effect on your credit as will the period leading up to the short sale. Every late payment on your mortgage will have a detrimental effect on your credit score. A higher credit score will drop more quickly.
Currently, lenders are not inclined to begin negotiating a short sale until the borrower is at least two months late. The short sale process takes 3 to 4 months or longer to complete, so by the time it is complete you will likely have at least 5 or 6 instances of 30-day late payments which will hurt your credit score.
When a short sale is completed, the loan may show “paid as agreed” or “paid off.” Waller & Mitchell is not qualified to advise you as to the effect on your credit score at that time. Another factor affecting your credit is whether you are paying your other debts in a timely fashion.
After selling your house by short sale, you will be unable to obtain a mortgage from a federally insured lending institution for at least two years. In some cases, it may take as long as 4 years. However, if the property is foreclosed rather than sold in a short sale, the minimum time before you may be able to obtain a mortgage from a federally insured lending institution is 4 years.
If you have questions about short selling your house, please call us at (727) 847-2288.
- Published in Real Estate - Foreclosure, Videos
Foreclosures Video Index
- Is There A Redemption Period After The Foreclosure Sale In Florida?
- Are There Any Hidden Costs in Buying A Foreclosed Home
- What is an Assumption Agreement?
- Are There Any Alternatives to Foreclosure?
- What Is a Foreclosure “Rescue” Scam?
- What is a Secured Transaction?
- May a Lender Perform an Interior Inspection of the Property if They Have Concerns About Property Condition?
- I Have No Mortgage On My Condo, But I Owe My HOA 10,000. Notice of Sale Issued. Will I Lose My Condo?
- We Purchased A Foreclosed House – Do We Need To Send A 3 Day Notice For Eviction?
- What Are The Consequences Of A Home Foreclosure?
- How Long Can You Remain in a Foreclosed Home After It Has Gone to Auction?
- The Property I Rent is in Foreclosure, What Are My Options?
- How Does a Lender Determine a Borrower’s Eligibility for a Loan Modification?
- Can I Dispute a Foreclosure Action on My Home?
- How Long Do I Have to Wait to Qualify for a New Mortgage After a Short Sale?
- Can I Short Sell My Home if I Am Not Behind in Mortgage Payments?
- Do I Qualify for the Foreclosure Relocation Assistance Program?
- If My Home Goes into Foreclosure, Can I Remove and Sell the Kitchen Cabinets?
- Can a Chapter 13 Bankruptcy Help to Forestall a Foreclosure?
- How Long Can I Stay in My Property if I Stop Paying the Mortgage?
- How Can an Attorney Help Me if I’m in Danger of Losing My Home?
- What Do I Need to Know About Loan Modification?
- Foreclosure Commercial
- Do I Have a Right to Sell My Property if It is in Foreclosure?
- If I Short Sell My House, Do I Have To Pay The Lender The Difference?
- If I Short Sell My Home, Can I Buy Another Home?
- If My Home is in Foreclosure, Can I Buy Another House?
- If My House is in Foreclosure, Can the Lender Take Money from My Bank Account?
- If My Home is in Foreclosure, Can the Lender Lock Me Out of My Home?
- What is the “Save Our Homes” Amendment?
- What is a Deficiency Judgment?
- Who Can Foreclose on a Piggyback Mortgage?
- What Should I Do if I’m in Danger of Foreclosure?
- When Should I Let my Home Go Into Foreclosure?
- What are the Steps in the Foreclosure Process?
- What is a Short Sale?
- How Will a Short Sale Affect my Credit?
- Foreclosures Video Index
- Short Sales Video Index
- Published in Real Estate - Foreclosure, Videos
Short Sales Video Index
- Is There A Redemption Period After The Foreclosure Sale In Florida?
- Are There Any Hidden Costs in Buying A Foreclosed Home
- What is an Assumption Agreement?
- Are There Any Alternatives to Foreclosure?
- What Is a Foreclosure “Rescue” Scam?
- What is a Secured Transaction?
- May a Lender Perform an Interior Inspection of the Property if They Have Concerns About Property Condition?
- I Have No Mortgage On My Condo, But I Owe My HOA 10,000. Notice of Sale Issued. Will I Lose My Condo?
- We Purchased A Foreclosed House – Do We Need To Send A 3 Day Notice For Eviction?
- What Are The Consequences Of A Home Foreclosure?
- How Long Can You Remain in a Foreclosed Home After It Has Gone to Auction?
- The Property I Rent is in Foreclosure, What Are My Options?
- How Does a Lender Determine a Borrower’s Eligibility for a Loan Modification?
- Can I Dispute a Foreclosure Action on My Home?
- How Long Do I Have to Wait to Qualify for a New Mortgage After a Short Sale?
- Can I Short Sell My Home if I Am Not Behind in Mortgage Payments?
- Do I Qualify for the Foreclosure Relocation Assistance Program?
- If My Home Goes into Foreclosure, Can I Remove and Sell the Kitchen Cabinets?
- Can a Chapter 13 Bankruptcy Help to Forestall a Foreclosure?
- How Long Can I Stay in My Property if I Stop Paying the Mortgage?
- How Can an Attorney Help Me if I’m in Danger of Losing My Home?
- What Do I Need to Know About Loan Modification?
- Foreclosure Commercial
- Do I Have a Right to Sell My Property if It is in Foreclosure?
- If I Short Sell My House, Do I Have To Pay The Lender The Difference?
- If I Short Sell My Home, Can I Buy Another Home?
- If My Home is in Foreclosure, Can I Buy Another House?
- If My House is in Foreclosure, Can the Lender Take Money from My Bank Account?
- If My Home is in Foreclosure, Can the Lender Lock Me Out of My Home?
- What is the “Save Our Homes” Amendment?
- What is a Deficiency Judgment?
- Who Can Foreclose on a Piggyback Mortgage?
- What Should I Do if I’m in Danger of Foreclosure?
- When Should I Let my Home Go Into Foreclosure?
- What are the Steps in the Foreclosure Process?
- What is a Short Sale?
- How Will a Short Sale Affect my Credit?
- Foreclosures Video Index
- Short Sales Video Index
- Published in Real Estate - Foreclosure, Videos