Rules of Short Sales

• The homeowner is delinquent on their mortgage payments, which is typically a minimum of 2 months
• The homeowner must provide proof of financial hardship
• The homeowner must not net any money from the sale of the home
• The seller must find a qualified buyer for the home, who is willing to buy the home as-is.
• The homeowner must submit all required paperwork to the lender to start the process.
• It is difficult for the homeowner to complete the sale on their own, without a Realtor
• The lender pays the Realtor’s fees and closing costs
• The Short sale must net the bank more money than a foreclosure sale
• The homeowner is not responsible to pay taxes on the amounts discounted by the lender
• The bank cannot sue the homeowner for losses, assuming they are under the Homestead Exemption Statues.

The buyer must have approved funding to convince the bank that they are serious about the transaction.  They can still obtain an inspection, but the bank will not pay for any repairs.  This is why most offers on short sales are far below the value of the home.

Short sales are a great solution to foreclosure and it’s important to hire a realtor who specializes in short sales and foreclosures to get your highest chance of getting it completed.