Is A Short Sale For Me?

A short sale is a real estate transaction in which the bank or lender agrees to let the homeowners sell their home for less than their loan balance. In some cases, the sellers don't need to pay back the difference between what they owe and the proceeds of the sale.

Recent changes in the industry have streamlined the short sale process, making this sort of transaction a popular alternative for both buyers and sellers. Additionally, banks are much more interested in facilitating short sales and avoiding foreclosures that result in placing the properties back on their books.

Who benefits in a short sale?


In many cases, short sales present a proverbial "win-win" situation. Here's how:
Sellers avoid foreclosure and protect their credit from the harder hit of foreclosure.
Buyers receive a good price on the home.
Lenders avoid a costly foreclosure. The potential loss from a foreclosure is typically higher than a loss from a short sale.

 

How it works

Say you owe $200,000 on your home and can no longer make the mortgage payments. One option is to refinance your home and secure a lower payment based on a longer term or better interest rates. But if your property has lost value due to local market conditions (say it would sell for only $150,000), refinancing isn't feasible. If the bank agrees to a sale at $150,000, it's called a short sale.

Although short sales have become more common in recent years, banks don't always grant them. In general, they approve short sales in theses situations:


Seller has a hardship (such as divorce, bankruptcy, unemployment, job relocation).

Seller owes more on the mortgage than the home's current market value.

Mortgage is in or near default status.

Seller has no assets.

However, different banks and lenders have different requirements. So sellers should discuss the short sale option with their lender.

Short sales can present a great deal for buyers. But the process is a bit more complicated than a normal home purchase, and it will take patience.

Get In Touch

Local Expert Updates

Janie Eick

Cell: 712.339.0574

Aaron Jones

Cell: 123.475.4564

Community Updates

Pike's Point State Park

Pike's Point State Park in West Lake Okoboji

Pike's Point is located at 15973 213th Ave, Spirit Lake, IA on beautiful West Lake Okoboji. It is one of the largest parks in the Iowa Great Lakes, and provides for all kinds of activities including fishing, swimming, bird watching etc. This park also has a rest room, and a beach. If coming by boat, one wants to be careful as the point extends far into the lake, and there is a warning buoy roughly 300 feet from the point of shore. In 2010, many trees here were uprooted because of some severe straight line winds during the storm that reaked havoc through the Iowa Great Lakes.

Real Estate and MLS Homes For Sale in West Lake Okoboji

AmericInn

AmericInn in Okoboji

AmericInn Lodge & Suites is centrally located in Okoboji on beautiful Brooks National Golf Course. This hotel offers 61 guest rooms all with 32' flat screen televisions and plush top beds. There are a variety of different room types are available.....fireplace, whirlpool tub, patio or balcony. They offer a free hot home-style breakfast such as waffles, sausage, eggs or biscuits and gravy, fresh fruit, yogurt and more! Enjoy the heated swimming pool, whirlpool, sauna or soak up the sun on one of the three patios. AmericInn offers an affordable option to tourists, especially in the summer. It is also conveniently located just off the trail system in Okoboji.

Real Estate and MLS Homes For Sale in Okoboji

Snappers Turtle Bay Cafe

Snappers Turtle Bay Cafe in Okoboji

Come to Snappers Turtle Bay Cafe and enjoy the relaxing laid back island atmosphere that you can only find along the waters of Turtle Bay. Open to the public for lunch and dinner, Snappers menu is unique to Okoboji which offers quality food and service that is sure to please visiting patrons.

Real Estate and MLS Homes For Sale in Okoboji

Subscribe To Our Newsletter