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Many homeowners in Milwaukee have found themselves in a situation over the past few years since the great real estate crash where they owe more on their home loan than their property will appraise or sell for, yet they are still in a position of needing to sell due to a hardship, change in employment or lifestyle.
A Short Sale is one of a few alternatives to foreclosure where the seller and bank negotiate the terms of selling the property for less than the amount owed on the mortgage.
Banks choose to to negotiate a short sale because it typically saves them time and money vs. going through a lengthy and sometimes costly foreclosure process.
Milwaukee Short Sale Overview
A short sale in Milwaukee is where a seller does not have enough equity and/or liquid assets to pay off the mortgage balance or other liens attached to a property, at which point the seller and lien holders negotiate a new lower price that is less than the amount owed on the property.
A Short Sale is an alternative to foreclosure and may be an option if:
- You are ineligible to refinance or modify your mortgage
- You are facing a long-term hardship
- You are behind on your mortgage payments
- You owe more on your home than it’s worth
- You have not been able to sell your home at a price that covers what you still owe on your mortgage
- You can no longer afford your home and are ready or need to leave
Short Sale Benefits:
According to Fannie Mae, there are a few primary benefits to choosing a short sale over foreclosure:
- Eliminate or reduce your mortgage debt
- Avoid the negative impact of foreclosure
- Start repairing your credit sooner than if you went through a foreclosure
- May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years)
The Short Sale Process:
If your scenario is eligible for the short sale option, the process is similar to a normal real estate sales transaction. You will work with a real estate agent to market and sell your home.
However, your mortgage company will also be working with you and your real estate agent every step of the way to set the sales price (based on current market value), collect financial information and negotiate with other lien holders, review acceptable offers, agree to the terms of the sale once a buyer has presented an offer and work with the buyer’s agent to finalize the sale of the property.
In some cases, you may be eligible to receive relocation assistance to use toward your moving expenses and to make the transition to new housing easier.
A Short Sale may take up to 120 days, but this could be shorter or longer depending upon your specific situation. If you are unable to sell your home, you may be able to transfer the ownership of your property to the owner of your mortgage (also called a Mortgage Release or Deed-in-Lieu of Foreclosure).
Call us today for a referral to an experienced short sale agent in Milwaukee – 702-423-8127