What is an Idaho Short Sale?

A Short Sale is when you need to sell your property but you owe MORE on the property than what you can sell it for.  You are asking the lien holder (Bank) to accept less than what is owed to them.

Let's say you bought your home in 2006 and paid $300,000 for it. You mortgaged $285,000. Because of a legitimate hardship, you can no longer make your payments. You MUST sale or you will be foreclosed on. Your home can now only be sold for $250,000.  After selling expenses, you would have approx. $230,000 left to pay the bank.   So, you would either have to bring $55,000 to the closing table, ($285,000-$230,000=$55,000) OR, ask your lender if they will accept $55,000 less for the note.  If the lender accepts, that is a short sale.

Why would a lender want to accept an Idaho Short Sale?  Foreclosure is a time-consuming and expensive process for lenders.  Many times, lenders recognize that if they accept the short sale, their company will actually loose LESS money than if they foreclose on the home.  Also, in a declining market, each month the home worth less. It is better for the bank's bottom line. 

Are all homes eligible for a Short Sale?  Anyone can ask their bank to accept a short sale payoff on their property.  The bank may or may not accept the short sale based on many factors such as your financial situation, and your agent's ability to negotiate with the bank.   There are many different lenders, and each one has different criteria for which Short Sales they will approve. 

What does it cost me?  There are NO out of pocket costs for the seller!  The real estate fees, closing costs etc, are all deducted from the proceeds of the sale before the remainder is used to pay the bank. 

Does the homeowner have to re-pay the "short" amount?  Sometimes the lender will require a homowner to sign a note for all or some of the deficit amount., BUT many times the "short" amount is forgiven.  Signing a note however, is a much better situation than having a Foreclosure on your credit history. 

Do I have to be behind in my payments? Not always!  Each lender is different, and each short sale is different.  Call to find out.  Taking action sooner is always better! 

If you want to know if you are eligible for a short sale, please contact me.  I will assist you in a  professional, confidential, and non-judgmental way.  I am here to help you avoid foreclosure and get your home sold! 

If you have a property that needs to sold as an Idaho Short Sale, please fill out the form and I will get the paperwork right out to you!