Cincinnati Homes For Sale

A short sale is the sale of real estate where the price the buyer agrees to pay is insufficient to pay off the liens on the property. Usually it is the bank who, in this market, is the entity that agrees to take less than they are entitled to.

The reasons why an owner would have to resort to a short sale is that the owner of the property no longer has the money to make their mortgage payments. They could have lost their job, have health issues that they choose to pay for rather than their mortgage, a divorce that results in only one person being responsible for the loan, or relocation for job reasons.  The owner may also have a mortgage that has to be paid off by a certain date and because of the lower value of the house because of the market, a bank won't lend on it.

If you fall into any of these categories and if you are going to apply for a short sale, here is what you will need to do:-

• Put together a letter that itemizes the reasons why you need to sell your home and why you don't have the money to continue making payments on your mortgage.

• Get all your latest bank statements together that show your debt and any assets that you have. Banks don't usually require that you cash in all your retirement accounts in order to make your mortgage payoff.

• Call a realtor that regularly works with banks on short sales or foreclosures. On the Meadows Team we have a foreclosure Attorney, Chris Siegel, who has spent 10 years working as a foreclosure attorney. He has great experience dealing with the banks, knows what they need to make decisions, what their procedures are and how to talk to them to get the best outcome. One thing we always try to do is ensure that you close on your home without any future requirements to repay any shortfall on the loan payoff. Legally the bank can require that you agree to an unsecured loan for that shortfall but they are usually happy to get something paid of than wait until foreclosure, which is always another option for people in this situation. So call us immediately if you are thinking about this.

The time that it takes from the day we list a short sale house is usually at least 90 days. It really depends how many mortgages there are and who the banks are. Some of the banks are easier to deal with than others!

If you have already stopped making payments on your loan, call us immediately. Your credit will recover quicker if you do a short sale, than a go into foreclosure, so it is important to be proactive. It is easy to be depressed and humiliated by this difficult situation, just know that we are talking to people who are in your situation, every day. Join the club!

The Carol Meadows Team 513.766.3878