Unified Title Company is your partner in short sales…
SHORT SALE BASICS
A short sale scenario
arises any time the sum total of debt secured against a property exceeds the property’s current fair market value. This scenario is described euphemistically as being “upside-down” or “underwater.” But, not all property that is underwater can be short sold. In a short sale, one or more secured creditors (as necessary and appropriate) agree to accept less than the debt owed in order consummate the sale transaction. In general, a creditor’s willingness to accept less than what is owed is conditioned on two factors:
A short sale scenario has two common causes - (i) market forces cause a property to decline in value to such an extent that otherwise reasonable debt obligations nevertheless exceed its value; and (ii) seller acts or omissions result in excessive debt obligations. With regard to the latter cause, the total debt obligation typically involves both consensual and non-consensual liens.
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The seller lacks the means to pay the debt in fullat the time of closing; and
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The seller has a hardship (e.g., loss of income, forced relocation) that creates an immediate need to sell the property.
A seller with sufficient means to pay secured debt in full at closing and/or a seller who does not have a hardship driven need to sell may be denied a short sale. In addition, a seller deemed to have adequate future income potential may be asked to sign a promissory note as part of a short sale, which note obligates the seller to pay back some or all of the deficiency balance over time after closing.
Of course a creditor accepting a short payoff will generally seek independent confirmation of the fact that secured debt exceeds the fair market value of the property…
HOW CAN UNIFIED TITLE COMPANY HELP?
♦ Short Sale Division Guide to Short Sales
♦ Fees (Unified Title Company LLC / Unified Title Company of Northern Colorado, LLC)