Short Sales

Short Sales

Short Sales: An Explanation

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

Basically, here are the basics

  • The term "short" is referring to the value of the home being short of the loan on the property.  There is some confusion that a short sale is a quick sale but that is not accurate.
  • A short sale occurs when negotiations between a homeowner and the mortgage company(s) to accept less than what is owned on the property.  The buyer closes on the property and the lender releases the lein on the property short of what was owed

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

  • Financial Hardship – There is a situation causing you to have trouble affording your mortgage. A hardship can be one or many things which may include, divorce, loss of job, death, medical bills, and even excessive debt.
  • Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.


This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals.  Today, most mortgage companies require a real estate professional to be involved in the short sale process.  Dont try and battle a short sale on your own contact me and allow me to assist you in this process.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.

Understanding your options now could mean all the difference in the world.

Contact Information

Photo of Tony Stallings Real Estate
Tony Stallings
Edge Real Estate
38 S 2nd E
Rexburg ID 83440
Mobile: 208-681-2145
Office: 208-356-6331
Fax: 208-656-9402