Though 'short sale' is not a new term in the real estate industry, it seems that today it is being used far more often than it ever has before. In the last few days, short sales have been top of mind for me. Understanding that 1 out of every 10 homeowners are currently unable to pay their mortgage and could be facing foreclosure, I thought to myself I really need to wrap my arms around understanding all aspects of a 'short sale'. I decided to go the industry authority on short sales, The Distressed Property Institute. In fact I just completed their two day class and am now a CDPE, Certified Distressed Property Expert.
I learned many many things in the class taught by Tony Martinez; my biggest take away is that I now know there is hope for families facing foreclosure and there is a way for me as a Realtor to help them avoid it.
In just talking with some friends over the last few days, I realize that though people may recognize the term 'short sale', they are a little unclear what it means. In the CDPE class, short sales were defined as so:
- Property that is or will soon be in some stage of the foreclosure process.
- Property owned by a person or persons who is or are experiencing a period of financial instability.
- Property on which the mortgages total an amount higher than the current value and an owner must sell.
- Property that is in poor physical condition.
In order for the home owner to qualify as a short sell, they must prove hardship. Qualifying hardship reasons are as such:
- Mortgage adjustment /mortgage payment increase
- Loss of job
- Business failure
- Damage to property
- Death of a spouse
- Death of family members
- Severe illness
- Military service
- Insurance or tax increase
- Reduced income
- Too much debt
For any family going through a hardship, it is no doubt a tough time. A short sale of the property offers a financial solution to the situation and avoids an even larger misfortune of foreclosure.
If you are of need of some relief and help with your mortgage, contact me for a confidential consultation.