Distressed Property Defined
- Property that is in poor condition.
- Property that is or will soon be in some stage of the foreclosure process.
- Property owned by a person or persons who is or are experiencing a period of financial instability.
- Property on which the mortgages total an amount higher than the current value and an owner must sell.
What is a Short Sale?
In the past it was rare that a bank or lender would accept a short sale, however, due to overwhelming market changes lenders have become much more negotiable when it comes to these transactions.
A homeowner is 'short' when:
When a borrower owes an amount on his property that when combined with closing costs and commission is higher than current market value.
A short sale occurs when:
A negotiation is entered into with the homeowner's mortgage company or companies to accept less than the full balance of the laon at closing. A buyer closes on the property and the property is 'sold short'.
Foreclosure vs. Short Sale
If you have any questions or if you need assistance regarding a short sale, please give me a call!
R. Scott Boyer