Short Sales Made Simple

by Tori Anderson, First Founders Financial

The topic of Short Sales arouses much curiosity these days. A Short Sale is a negotiated agreement in which the lender accepts less for a property than what is owed. There is always a hardship involved, and the most common causes are:

• Health/Medical situations
• Increase in an ARM
• Predatory lending/borrowing practices
• Divorce or separation
• Over-use of credit
• Job loss or job transfer
• Two house payments
• Declining market values

Though a Short Sale and a Foreclosure both result in the property transferring to a new owner, there is a world of difference between the two processes, as shown below:



Although a looming Foreclosure might prompt either a Short Sale or a Loan Modification, the Short Sale helps a person DIVEST of a property, while a Loan Modification helps a person RETAIN a property.

Maybe you’ve heard the expression “the quickest way out is through.” The Short Sale is a perfect example of this principal at work. Why? Because for thousands of property owners, it is the most graceful way out of an impossible financial situation. It paves the way for a new start.

Perhaps the scariest part of a Short Sale is communicating with the lender. Trying to reach decision makers can be a frustrating process. A third party negotiator (Short Sale Specialist) is often the answer. A good Short Sale Specialist will work with you and your Realtor to determine (1) whether you qualify and (2) the optimal short sale price. They handle all paperwork and negotiate with the lender while your Realtor markets the property at a reduced price … one that will insure a quick sale even in a slow market. Some Short Sale Specialists even guarantee the Realtor’s commission.

Short Sales are up dramatically. In these times of falling property values and financial hardship, more and more people are qualifying for short sales. Realtors® in Pasco County, Florida report short sales are as high as 60 percent of the properties they’re selling. Homes in all price ranges are affected – from under $100K into the $Millions. Experts say the trend in Residential Short Sales will run for about two more years, and then another few years for Commercial Short Sale properties. They say it will take about 5 years to work our way out of this situation.

Short Sales help people get back on their feet and moving on the right financial path again. They are a solution that will help bring our country, our fellow citizens and ourselves back to a position of strength.

If you would like more information about Short Sales, CLICK HERE to contact the author.

Tori Anderson, Consultant

Short Sale Specialists