Is A Short Sale For Me?

A short sale is a real estate transaction in which the bank or lender agrees to let the homeowners sell their home for less than their loan balance. In some cases, the sellers don't need to pay back the difference between what they owe and the proceeds of the sale.

Recent changes in the industry have streamlined the short sale process, making this sort of transaction a popular alternative for both buyers and sellers. Additionally, banks are much more interested in facilitating short sales and avoiding foreclosures that result in placing the properties back on their books.

Who benefits from a short sale?

In many cases, short sales present a proverbial "win-win" situation. Here's how:
Sellers avoid foreclosure and protect their credit from the harder hit of foreclosure.
Buyers receive a good price on the home.
Lenders avoid a costly foreclosure. The potential loss from a foreclosure is typically higher than a loss from a short sale.

How it works

Say you owe $200,000 on your home and can no longer make the mortgage payments. One option is to refinance your home and secure a lower payment based on a longer-term or better interest rate. But if your property has lost value due to local market conditions (say it would sell for only $150,000), refinancing isn't feasible. If the bank agrees to a sale at $150,000, it's called a short sale.

Although short sales have become more common in recent years, banks don't always grant them. In general, they approve short sales in these situations:

Seller has a hardship (such as divorce, bankruptcy, unemployment, job relocation).
Seller owes more on the mortgage than the home's current market value.
A mortgage is in or near default status.
Seller has no assets.
However, different banks and lenders have different requirements. So sellers should discuss the short sale option with their lender.
Short sales can present a great deal for buyers. But the process is a bit more complicated than a normal home purchase, and it will take patience.

GET IN TOUCH

Local Expert Updates

Brooke Jones

Cell: 641.420.2172

Janie Eick

Cell: 712.339.0574

Matt Lippon

Cell: 712.330.0604

Aaron Jones

Cell: 454.545.6565

Community Updates

Buyer and seller real estate app, right at your fingertips.

Browse real-time MLS listings in the Iowa Great Lakes Region
Filter for specific areas and amenities
Be notified when there is a new MLS listing match, status change, or price drop
Stay in touch with your agent
Save searches and favorites
Agents, Buyers, Lenders and Appraisers can view your transactions
View, download and sign documents

Every 30 seconds, a RE/MAX agent helps someone find their perfect place. Let us help you find yours.

1. Search "SellBoji" in your app store on your cell phone.
2. Download the app
3. Create a profile to access info or save searches (This is not necessary to browse the listings)
4. Enjoy all the benefits of the real estate app

About The "Real" Estate Blog Learn More

Brooks North

Brooks North is a newer housing development located on a cul-de-sac offering beautiful views of Brooks Golf Club, ponds, nature areas, the bike trail system and the Nature Center. There are many beautiful homes and only a few vacant lots remain. Brooks North is located on the North end of Brooks Golf Club in Okoboji, IA.

About Okoboji

Spirit Lake Fellowship Church of the Open Bible

Spirit Life Fellowship Church of the Open Bible
2504 Enterprise Ave
Spirit Lake, IA 51360

Services
Sunday at 10:30 a.m.

About Spirit Lake Learn More

Useful Resource Links

Area Schools

Colleges

Medical Facilities

Town/City Information

Subscribe To Our Newsletter

The newsletter is sent periodically and will update you on the latest real estate news and offers.