Welcome to Chris Wolfe Real Estate
Specializing in Short Sales
- Is your loan amount more than your homes' value?
- Do you want to get out from under a bad loan?
- Are you tired of throwing money down a bottomless pit?
What is a short sale and how does a short sale work?
Simply put, a short sale is when you sell your property for less than the mortgage amount - the lender forgives the difference.
If your property value is less than the amount you owe on your home, then it doesn't make much sense to continue owning that home. A third party short sale buyer can make an offer to the bank to pay off your loan.
Let's say you bought a home in 2006 for $250,000 with 10% down. You would now owe about $220,000. Let's also assume your payments are $1700 per month and you could rent a similar home for $1200 per month.
A short sale buyer will make an offer to the bank to cash out the lender at a discount to the face value of the loan. If it is accepted, you can walk away from the $220,000 debt and owe nothing. The bank relives you of the debt and does not show a foreclosure on your credit record.
Now instead of putting good money after bad and continuing to fund a losing investment, you can rent a home and save the $500 per month.
Remember, through this process you are under no obligation to sell and there is never a fee to you.
