What does it mean to short sell your house?

What Is A Short Sale? A short sale occurs when you sell your house for less than your existing mortgage balance. This has to be done in collaboration with your lender (or lenders if you have a second mortgage with a different company). The lender has to approve any sale. Why Do People Short Sell A House? In 2008, the housing market crashed.

Can You short sell your home to a family member?

If you can however show documented offers which have been lower than what your family member is willing to pay, along with proof of sale of similar properties in the area, and if the short sale process has taken more than a few months to close, a lender might reconsider allowing the exemption on the sale.

When do you need to do a short sale?

When you owe more on your home than it’s worth and you need to sell, the transaction in which you will sell your property is called a short sale. You need your lender’s approval to do a short sale because they’ll be accepting less than they’re owed at closing.

How long does it take to list a house for short sale?

List your property: Once the lender has approved the short sale, you can list your property with a real estate agent. You’ll need to present any offers to the lender for approval. This process can take two weeks to several months. If you have a second mortgage, both lenders must approve each other’s terms,…

How does a foreclosure work in a short sale?

If the occupants have not yet left the home, they are evicted by the lender in the foreclosure process. Once the lender has access to the home, it orders an appraisal and proceeds with trying to sell the home. Foreclosures do not normally take as long to complete as a short sale because the lender is concerned with liquidating the asset quickly.