What exactly is a Short Sale?

A short sale of a house is when the house is sold for less than what is owed on the mortgage. For this to happen, the lender has to agree to accept less money than what is owed. Not all lenders will agree to this. Some might be more inclined to agree if you are late on your payments, although part of that agreement might mean they tap into any cash resources you might have. Others may ask you for a hardship letter, preliminary net sheet, and proof of income and assets. They might also ask you to pay back the amount of the write off or send you a 1099 to pay taxes on the amount of the deficiency. Short sales happen because there is sometimes not enough equity in a home to pay all of the costs of the sale, when sold. This includes paying off the mortgage, broker’s fees and other fees associated with the sale. Talk to your lender and your CPA before you make any major decisions to determine the unintended consequences of a short sale!

Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
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