I explained to her that a short sale takes place when you really need to sell your home but, because of the downturn in the market, you can’t sell it for what you owe on it much less pay any costs associated with selling. In a short sale, you put the home on the market at the market value and when you receive a contract, the lender accepts the contract as payment for the loan and the costs associated with selling.

My daughter’s instant response was, “Why would a lender do that?!!” I don’t think she could quite see a lender eating the loss because they wanted to help her out and, of course, that is not the reason. I explained that, if the house had to go into foreclosure, it would cost the lender a lot of money and they usually get a property in shabby condition. Short sale is a simple business decision for the lender. It saves the lender money. The nice thing is that it can also save the homeowner a lot of distress, devastating damage to their credit and even the opportunity to own another home in the near future. It can be a win for everybody.

If my daughter was surprised that a lender would “do that”, just imagine her surprise when I told her that the lender often pays the homeowner some money at the closing table to help them relocate. That is also smart business. It is in the best interest to the lender when everything concludes quickly and smoothly. How can that happen when the homeowner walks away from closing without a dime.

Because it is business, the lender does expect thorough explanations and documentation and they want the home listed with a professional. They want to know that a short sale is truly necessary and who can blame them? They are losing money. A good Real Estate professional and short sale agent can be a huge help in getting that part right.

If your interest in short sales is more than just a passing curiosity, we can help. You are welcome to call The Lane Team, Larry and Carol, at 316-247-0264, for a no obligation consultation. We can evaluate your situation and tell you if you are a candidate for a short sale or if there is another option that would be better for you. The sooner you call, the more control you can have over the situation. You owe it to yourself to be armed with all the facts.

While a short sale can be a good way to mitigate impossible financial circumstances with minimal damage to your credit, you are still at risk of foreclosure even after you lender has approved a short sale.  Many home owners are unaware of this risk and some Wichita agents are far better prepared to deal with unpredictable lenders.  We can help you avoid a foreclosure scenario and provide you the best possible chance for successful closing of your sale.