Panama City Short Sale Info
What is a Short Sale?
Foreclosures in Panama City, Florida are affecting families, communities, the housing market and the local economy. One option many troubled homeowners are taking to reduce penalties and avoid foreclosure is a short sale. The question is, what is a short sale?
A short sale is the sale of real estate in which the sale proceeds fall short of the loan balance or payoff. It’s an alternative many homeowners are taking to avoid foreclosure and default penalties.
In order for a short sale to take place the lender must agree to a payoff on the loan for less than the remaining balance. A lender will accept a short sale in order to avoid the cost of foreclosure and increase the amount they will receive on the outstanding loan balance. This process also protects property values in the community and helps the homeowner preserve a higher level of credit compared to foreclosure. In most instances, specific criteria must be met to qualify for a short sale: mortgage in or near default stage, homeowner can provide evidence of economic hardship, property has little or no equity.
A short sale occurs when a homeowner lists a property for sale for less than the remaining loan balance. Once the homeowner receives an offer they submit it to the mortgage lender along with a short sale package. Before a short sale can take place the mortgage lender must agree to a loan payoff for less than the remaining balance. Lenders
A short sale is a more complex than the average real estate transaction. In a normal transaction you have the home seller, their agent, the buyer and their agent and their lender. In addition to those parties a short sale also involves the seller’s loan servicer, junior lean holders, mortgage investors, and possibly mortgage insurers.
The process of completing a short sale can be difficult without help. Hiring a qualified REALTOR to act as liaison between all parties involved and guide you through is very important. You will want a REALTOR with experience to expedite the short sale transaction with your best interests in mind. A REALTOR that can help you close the transaction in a timely manner while avoid common mistakes. Homeowners should consult with a tax expert and obtain the services of an attorney to protect themselves from future claims by the lender.
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