Asheville Short Sale

No homeowner ever wants to find him or herself falling behind on mortgage payments, but it can happen to the best of us.  Often, circumstances entirely outside of our control can get in the way of the most carefully-laid plans. And, when they do, you may find yourself wondering “can I short sell my house?”  The answer is yes, with criteria – to find out exactly what conditions you need to know about an Asheville short sale read on. 

First, it’s important to understand what exactly a short sale is.  Simply put, it’s when a property sells short of the balance owed to the bank.  Remember that banks are in the mortgage business, not the property management business – they don’t want your home, they want your money, and if they see their best shot at getting the biggest chunk of that money as accepting a short sale, they will!

That said, not just any home can be a short sale.  There are four things that need to be in place in order for the short sale to go on:

1. Involuntary hardship – you as the homeowner must be able to show that you’ve experienced an involuntary hardship that has prevented you from continuing to make your regular mortgage payments.  This may sound daunting, but it’s really a fairly low barrier of entry – the hardship can be anything from divorce to medical issues, relocation of more than 75 miles, death in the family, or loss of income.  So long as you can demonstrate that you have experienced one of these circumstances and that it has prevented you from being able to continue making payments, you’ll have met this criterion.
2. Loan In default – the loan on your home must be in default in order for a short sale to occur, which simply means that you must be behind on your mortgage payments.
3. Market price offer – In order for a short sale to be allowed, you have to have an offer for your home for what the property is appraised as being worth.  Of course, if that value is equal to or greater than what you currently owe, you don’t need a short sale – you can simply go through a traditional sale. If there are substantial issues with the property that will require repair – roof damage, water damage, mold, mechanical issues, or foundational/structural issues – a contractor’s quoted cost for repair can be subtracted from the appraised value for the purpose of calculating a market price offer.
4. Full participation of everyone listed on the note – In order for a short sale to proceed, every individual listed on the note must be in full participation.

If you think you may meet the above criteria and have found yourself wondering “can I short sale my house?” reach out to us at 828-224-6443 or at AshevilleCashBuyers.com to learn more!