Janesville WI Short Sales
SHORT SALES OUTLINED!
1. Defined: A Short Sale occurs when a home seller owes more on the mortgages and liens on their property than it’s current market value. In other words, to sell the property in the current market place, the lien holders would have to accept payment in an amount less than what is owed to them.
2. Disclaimer: This outline does not constitute legal or tax advice. Parties should contact their attorneys and tax advisors before entering into a Short Sale!
3. Seller issues: A. Stress – may be behind or cannot make payments
B. May be in Foreclosure
C. May have more than One Lien
D. May not have enough time to complete a Short Sale
E. A Short Sale may not be the Seller’s best choice (Consult your Attorney)
F. Seller has no cash for repairs
G. Seller gets no proceeds from the sale
H. A Short Sale may take 2-6 months or more to complete
I. Buyer’s may cancel contract before bank approval
J. Normally, there must be a hardship reason
K. Seller needs to provide detailed financial information for an approval
L. Deficiency – How is the Lender going to handle the loss
4. Buyer Issues: A. May be a long time line – Need patience
B. Bank may or may not approve the Short Sale
C. Buyer must be pre-approved or have cash
D. When the bank does approve, may have to close quickly
For a Current list of Short Sales or Bank Owned Properties in Rock County, Wisconsin, contact me at: morserealestate@hotmail.com
