Living in Central Oregon and Wondering If You Qualify For A Short Sale…
Short Sales will be a term used rather heavily within the real estate market for at least the next five years, and in my personal opinion it could be closer to ten years. Why is the Central Oregon Real Estate Market saturated with short sale situations? There are a few answers to that question but the most prevailing is the banks greed and extremely loose lending practices lead us all down the road to a housing collapse. So what exactly is a short sale anyway? Essentially, a short sale occurs when a property is sold and the sale/purchase price of the home does not cover the remaining amount of the home mortgage loan and closing expenses (read more here). In order to qualify for a short sale the estimated value of the home must be lower than the amount owed on the remaining mortgage loan. A seller would also need to obtain the mortgage holders permission to attempt a short sale. Finally, some type of hard ship must be shown. Typically, a homeowner being late or in default will show the mortgage holder a legitimate hardship. A homeowner who is underwater in their property and really really really doesn’t like their situation does not qualify for a real estate short sale.
Side notes to short sales…
- Official paperwork will need to be submitted to the lender when the seller requests permission to move ahead with a short sale.
- I’ve heard that sometimes mortgage holders will reject a short sale packet and tell homeowner they need to obtain a offer first. If this has happened to you please contact me, I may be able to help be of resource.
- Short sales are subject to third party approval. Meaning when a offer comes in to the short sale seller, the seller will consider the offer and accept or reject. Once a accepted offer is inked, than the offer moves to the mortgage / lien holder for third party approval.
- Whomever holds the mortgage may influence the length of time it takes to complete a short sale.
- Is there a second lien against the property that will need to be satisfied… If there is that could bring a deal to a halt, typically relatively close to the closing of the transaction.
- There is more information that you will need to know than what is contained in this article.
Here are two more articles posted by a colleague of mine. Her name is Thesa Chambers and we work in the same office-Prudential Northwest Properties. Both articles regard short sales and the second answers questions raised by the first.
If you have any questions or comments, please contact me via email khoak@prunw.com cell 541-639-7760 office 541-593-1234 ex. 7037
Kyle – assisting seller’s with short sales will be a major part of our job for years to come. Thankfully Prudential NW Properties has taken great strives to be able to provide exceptional service and tools to these sellers. I look forward to seeing more about short sales from you. Although Sunriver does not have many short sales right now – having the tools, the information and people that are on the cutting edge will give those sellers that need assistance the help they need.