There are many circumstances that could result in a homeowner selling their home in Amarillo, Texas in a short sale. These circumstances include medical emergencies and loss of income. Because a short sale typically occurs quickly or in emergency situations, it is important to understand what this type of sale is. Homeowners should also understand short sale approvals and deficits.
Understanding short sales
A short sale is a legal way to avoid foreclosure on a home. This type of sale happens when a seller lists and sells their home for less than what is owed on the mortgage. However, there are certain circumstances where a short sale transaction is advantageous to both the seller and the lender.
Understanding short sale approvals
The entire short sale process requires approval from the lender(s) at each milestone. Because of this requirement, the transaction can take six and nine months to complete. A homeowner must first be late on their payments and have previously indicated to the lender(s) that they want to do a short sale. After these requirements are met, the homeowner can list their home on the Amarillo market as a short sale. Any offer received must be approved by the first mortgage lender, then by any secondary lender.
Understanding short sale deficits
All lenders must approve the short sale documents and agree to waive the lien to forgive the remainder of the loan. If all lenders do not agree to waive the remaining balance, or deficit, the original owner could still be responsible for the repayment. Since a lien is lifted during the short sale, the lender must file a lawsuit against the previous owner for the remainder of the mortgage balance.
Short sales are a great way to buy a home at a drastically reduced price. Hiring a knowledgeable and experienced real estate agent can make buying a home in a short sale easier. The Amarillo real estate specialists at Elite Real Estate Group can help you buy or sell a home. We serve buyers and sellers in Amarillo and many surrounding areas, including Bushland, the Colonies, Tradewinds, Canyon, Hillside Terrace, the Greenways, City View, Puckett, and more. To learn more about our services, give us a call at (806) 337-0883 or Contact Us by email. You can also view our listings today to see homes that are currently on the market.