By now you have surely heard the term “short sale” more than once. But, what exactly is a short sale? How does it work? Who can do a short sale? Is this something that applies to you? Below are answers to the most commonly asked questions regarding short sales.

What is a short sale?
Short sale is the term used to describe the scenario when a lender agrees to accept less than what is owed on a certain property, thus making it a short pay or a short sale. For example, if the total mortgages on your home add up to $350,000 and your home is worth $300,000 – upon a successful short sale negotiation, the bank or banks would have to agree to accept a lesser amount than what is owed in order for you to be able to sell your home, since you would be unable to pay back the entire amount borrowed out of the proceeds of the sale.

Why would my lender agree to this?
It is a matter of a simple cost benefit analysis made by the bank. A bank, typically, will allow a short sale if they believe that it will result in a smaller financial loss than the less attractive alternative of foreclosing on the property, which usually adds up to higher fees and holding costs to the bank.

How do I know if I qualify for a short sale?
The first thing your lender will look at is if there is a true financial hardship. That has to be the starting point for a short sale. If there is no hardship that we can prove, the bank will probably not agree to do a short sale.

Other questions you can ask yourself to find out if you doing a short sale applies to you are:

• Is my mortgage amount more than what my house is worth?
• Am I having difficulty making my mortgage payments?
• Do I want to postpone foreclosure?
• Is my mortgage going to adjust soon, or is my mortgage adjustment already creating a financial hardship?
• I want to sell my house but is there enough equity?

The best way to find out if a short sale is right for you is to talk to KAMRAN about your property and your mortgage status. KAMRAN has successfully negotiated hundreds of short sales and has the experience and the right tools to do it for you. The key is to act before it is too late. Time is of the essence.

If you think doing a short sale is the right option for you, or if you would like to find out more about short sales; don’t hesitate to call KAMRAN today. He will be more than happy to answer any and all of your questions to help you determine if doing a short sale may be an option for you.