What is a short sale?

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Estee Soto

Date Published: 2021-09-23

When we talk about short sale, we refer to your property sale for less than what you owe on your mortgage. This kind of sales are made when the owner needs to pay off their mortgage debt.. However, you must comply with certain aspects to qualify for this type of sales, which are:

1- Your debt must be greater than the value of the property.
2- Have at least one payment of your past due mortgage.
3- You have to certify that you can not meet the payments.

Now, if you want to buy a house with these characteristics, it is necessary that you first find an owner who wants to sell in these conditions before going to the bank. In addition, it is important to explain to the owner of the house three things:

  1. Making this type of sales is one of the best solutions to settle debts.
  2. You have the possibility to negotiate with the bank to accept as a total payment a lower amount than is owed for the property.
  3. You must be totally in agreement with this type of sale, since the bank will request personal information.

On the other hand, it is necessary to speak with the owners about two points of utmost importance before taking the proposal to the bank.

  1. Set an amount that covers moving expenses: this point is important, since the seller will not receive money for the sale. This is why it is necessary to provide the owner with the money he needs to cover the move.
  2. Set a specific date for the owner to vacate the house.

In addition, you must take into account that it is necessary to meet two objectives so that the negotiation with the bank is satisfactory.

  1. Present in the bank convincingly the case of why the short sale should be made. In addition to making it clear why this decision is beneficial to the bank.
  2. Build a good reputation and a good relationship with the banking industry.

This article is made for informative and divulgative purposes. For this reason, it is important that before making any decision, visit or contact a certified specialist in the field, since the opinion of the expert is the one that should be considered.

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