Eugene Short Sale Homes

Short Sale Homes Answer Center:

A short sale is when the bank or lender is willing to take less than the balance owed against the property.  Most homeowners that are upside down in their property or have had financial hardship are exploring this option.  The National Association of Realtors is estimating well over 10% of homes sold will be sold as “short sales”.

The question that most people have is will a short sale ruin my credit?  The short answer is yes but not as bad as a foreclosure.  Foreclosures will preclude most borrowers for a time period of 4 to 7 years.  As with a short sales the time is much shorter 2 to 3 years.

A short sale purchaser can repurchase immediately with FHA financing assuming they were never 30 days past due and there is no deficiency judgment.  Though these cases are rare they do exist.  In most situations the borrower has fallen behind in their payments.

One common thread is that people tend to wait until foreclosure is imminent, this is not the thing to do.  Call your lender as soon as problems arise.  If you have lost your job or had a unforeseen event that cause financial stress contact your lender as soon as possible to get the ball rolling.  Short sales take time, be proactive.

Investigate state laws and by all means make contact with a real estate agent that is an expert in short sales.  There is online education everywhere, take advantage.

If you are proceeding with a short sale it usually takes two to six months or longer for the lender to approve the short sale.  Once the short sale is approved the lender sends an agreement with all the details to the transaction.  Pay close attention to the wording as you want the lender to release the buyer of any further obligation after close of escrow.

Warning, in all states there are no laws governing second lien holders to pursue seller for unpaid balances unless previously agreed upon.