Portsmouth NH | Short Sale – Can I Do One?

Selling your house via a short sale is a complex transaction that requires the services of experienced professional.

First of all let’s define exactly what a short sale is. A “short sale” is a real estate transaction where the lender or lenders allow a property owner to sell that property for less than the mortgage balance causing them to get a ‘short” payoff, hence the term “short sale”.

Why would a lender do this you may ask? Generally a lender loses less money in a short sale than they would if they simply foreclosed on the property and sold it on the open market.

Generally two things have to occur for a lender to approve a short sale.

  1. The value of the property must be less than the amount owed; the mortgage or mortgages.
  2. The owner must have a “qualified” hardship.

Just owing more than the current value of your house is not a qualified hardship.

Some example of acceptable hardships are:

  • Mortgage rate adjustments which make your payment more than you can pay.
  • Loss of job or reduction in pay
  • A death in the family
  • Divorce
  • A medical hardship
  • Job relocation
  • Military service
  • Business failure
  • Other reasons that create a legitimate hardship

If you think you might qualify for a short sale or just have questions, we’re happy to sit down with you and explain your options and recommend a course of action.

Jim Lee & Ann Cummings, “Your Seacoast Real Estate Experts”

www.MaineNewHampshireRealEstate.com

Give us a call today and let’s talk; no cost and no obligation.

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