What is a Short Sale?

“short sale” or “preforeclosure sale” – A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage.

“Appraised Fair Market Value” – the value of the home determined by uninterested broker/agent chosen by the bank also known as a Broker Price Opinion (BPO).

Approved offers must result in the minimum net sale proceed to the lender as outlined below:

· Offers Days 1-30 = 88% of Fair Market Value

· Offers Days 31-60 = 86% of Fair Market Value

· Offers Days 61-90 = 84% of Fair Market Value

Settlement costs may NOT include the following:

· Repair reimbursements or allowances

· Home warranty fees

· Discount points or loan fees

· Title insurance fees

***This article is not the exact case for every short-sale.  There are many more details to the short-sale process and some of these terms are specific to some banks and other banks go back a completely different set of rules.  Call Steven Bond for more information.