Friday, June 27, 2008

What is a Short Sale?

A Short Sale is when someone owes more on their mortgage(s) than they can clear from the sale of their property.
We dealt with lots of Short Sales in the early 90's, but at that time, generally homeowners expected to have to come up with the cash to close. It was not easily done, but only 15 years ago, Americans - by and large - understood when they took out debt it was their responsibilty to pay it off.
Today, homeowners are attempting to negotiate with the banks to get the banks to "eat" the difference. If there has been a true hardship, and the consumers can not continue to make their mortgage payments, banks are agreeing to forgive that debt, or at least a portion of it, with increasing frequency.
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