John Hacker

Welcome To A New World

My mission is to make Sense of the ever changing world of Real Estate.

Understanding a Short Sale

Q. What is a short sale?

A. A short sale is a program that allows the homeowner to sell home for less than the amount owed on the mortgage.

Q. How does one be considered for a short sale?

A seller may be eligible for a short sale if they have an involuntary hardship and can no longer afford the monthly payments on their mortgage.

During a short sale there is no leniency with the closing escrow date as there often is in a traditional sale. During a short sale, exceptions are rarely made and the buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow.

We'd advise buyers to be extra prepared

and try to have the loan finalized a few days in advance of the closing date.

No Longer Uncommon

Short sales once were extremely rare. But now, with unemployment climbing and home values down, more homeowners are pursuing short sales when they can't afford their mortgage.

About 40% of all sales transactions are such short sales, according to the National Association of Realtors.

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Knowledge is Power and we like to give this power to our clients.