The Ins and Outs of Short Sales


Short sales are not easy. With many lenders, they take a long time. And sometimes, even after the lender agrees to the short sale, the terms are not favorable.

So why do a short sale?

It’s important to realize that short sales are one of four options people have if they are experiencing difficulty making the mortgage payments. The first line of recourse is always to try for a loan modification. That doesn’t always work, but if it does, it may provide your best possible outcome.

One of your other options is to sell the house “short” – meaning that you negotiate with your lender to accept less on the loan payoff than what is owed. This typically results in much less damage to your credit – under Fannie Mae guidelines, you may qualify to buy a house again after 2 years instead of 7. Depending on the details of your loan and how the short sale is negotiated, you may walk away free and clear, with minimum damage to your credit.

A good Realtor can provide an effective consultation on all of your available options. If you find yourself in this situation, it is important to get the best possible information to allow you to prepare for your financial future.

Linda Eisenman is a Realtor with Keller Williams Realty. You can reach her at 916-838-4338 or [email protected]


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