How Do Short Sales Work?

Short sales are starting to pop up in our current market again. What is a short sale? I’ll answer that question today.

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What is a short sale?

A short sale happens when the borrower (or homeowner) of a loan owes more on a home than what it is actually worth in the current market. The homeowner will then short sell the property to the bank.

In these transactions, the biggest decision-maker is not the owner — it’s actually the lender or bank. If the seller owes $600,000 and you offer $500,000 for the property, the lender is the one who will accept or reject your offer.

The lender or bank will accept or reject your offer during a short sale.

Most short sales are also hardship sales. Hardship includes a death in the family, a divorce, or job loss.

There are many different nuances to a short sale and we are starting to see them again in this market. As the market slows down a little bit, homeowners may find that they owe a lot more on their property because they made an offer that is higher than what the property is actually worth.

If you have any other questions about short sales or about real estate in general, give me a call or send me an email. I would be happy to help you!

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Joe Mendoza has been involved in real estate for over 20 years. He has been a Real Estate Broker, Investor, Consultant, Advisor, Mentor, Managing Partner, Acquisitions Manager, and a Nationwide Coach. At present, he is President of the Joe Mendoza Team, Inc. San Diego, California. Mr. Mendoza also is an Executive Real Estate and Business Coach for Tom Ferry Your Coach, based in Newport Beach, CA.

Mr. Mendoza has a long track record of success. While at Prudential California Realty, he ranked as high as the Top 1% in the nation and was number 7 in all of San Diego County. He built a team of 2 full-time employees and 5 licensed associate agents.

Joe Mendoza
CA BRE # 01234540
Katcam Real Estate
100 E. San Marcos Boulevard, Suite 400
San Marcos, CA 92069
Toll-Free 24/7: 877-794-5227
Direct: 619-246-4663
joe@joemendoza.com
JoeMendozaTeam.com

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How Do Short Sales Work?

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