What is a short sale?

A homeowner is "short" when he or she owes an amount on his or her property that is higher than the current market value.  This does not mean that the homeowner will qualify for a "short sale".  To qualify for a short sale, the homeowner must have and be able to prove a hardship.  The hardship must be causing distress and prevent the homeowner from paying the mortgage.  The homeowner should be unable to pay off the mortgage, have (or will soon have) a shortfall and must be paying out more than is coming in.

Types of short sales

There are many different types of short sales - FHA - HAFA - Bank of America - Wells Fargo - traditional.  Each one has its own processing procedures and this is why it is imperative to get an experienced, qualified professional to guide you.  Call Norma Skeete at 703-920-0003 now.
Failure to do so will cause severe delay and possibly lead to foreclosure if it is not completed within the set time frames, thus negating the reason for the short sale which is the preferable option.

Why is the short sale option preferable to foreclosure?

Although the homeowner loses his home in both the short sale and foreclosure scenarios, short sales are considered preferable to foreclosures becausse short sales (1) may not damage the distressed owner's credit report and/or ability to obtain financing in the future as much as a foreclosure and (2) lessen the impact a foreclosure can have on the surrounding community.  The term "short sale" does not appear on one;s credit report, whereas "foreclosure" does .  The short sale homeowner is eligible for a new loan as early as 2 years versus the 3-5 years in the case of a foreclosure.