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Orlando Short Sales Explained

A short sale is an arrangement with your lender whereby they will allow you to sell the property for less than the amount of the current mortgage.

You are unfortunately what lender's call "upside down."

Let's take this example: you bought the house last year for $500,000, and foolishly took advantage of the mortgage broker's sales pitch and obtained a 100 percent loan. Now, the house will probably only sell for $475,000, and you lost your job and cannot afford to continue with the monthly mortgage payments.

Why would a lender permit this? First, you should understand that not all lenders will allow a short sale. Their decision depends on a number of factors: where is your house? how much loss will the lender suffer? What is the possibility that a speculator/investor will buy at a foreclosure sale?

Lenders have their own requirements, so I can only provide general information; you will have to consult your specific lender to determine what they need in order to move forward with the short sale process.

The short sale process works, but is complicated, time-consuming and uncertain. If you can start now -- before you are actually in default -- you will be ahead of the game. Complete Story

Source: RealtyTimes - Benny L. Kass

Orlando Foreclosure Listings  - MLS Orlando


Posted by Orlando Realty Experts on June 15th, 2008 11:33 AMPost a Comment (0)

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