Idaho Short Sales

Short Sales Near Boise, ID

A short sale is a real estate transaction in which the homeowner sells the property for less than the amount owed on the mortgage, with the lender's approval. It's typically used as an alternative to foreclosure when the homeowner is unable to continue making mortgage payments and owes more on the mortgage than the current market value of the property.

Here's how a short sale typically works:

1. Financial Hardship: The homeowner experiences financial hardship, such as job loss, divorce, medical expenses, or other circumstances that make it difficult to continue making mortgage payments. If this occurs during a time when they owe more on the home than it can be sold for in the current market, a short sale id often initiated.

2. Listing the Property: The homeowner lists the property for sale with the assistance of a real estate agent specializing in short sales.

3. Offer Acceptance: When a buyer makes an offer on the property, the seller accepts it. However, the offer is contingent upon the lender's approval of the short sale. This is why you often see the term "contingent short sale" on listings.

4. Short Sale Package: The seller, with the help of their real estate agent, submits a short sale package to the lender. This package typically includes a hardship letter explaining the seller's financial situation, financial documents (such as bank statements, pay stubs, and tax returns), a purchase offer, and a comparative market analysis demonstrating the property's current market value.

5. Lender Review: The lender reviews the short sale package and determines whether to approve the sale. They assess whether accepting the offer is financially preferable to proceeding with foreclosure.

6. Negotiation: If the lender approves the short sale, they may negotiate with the buyer and seller to finalize the terms of the sale, including the purchase price, closing costs, and any conditions of the sale.

7. Closing: Once all parties agree on the terms, the sale can proceed to closing, where the property is transferred to the buyer, and the seller is relieved of their mortgage debt.

Short sales can benefit both the homeowner and the lender by avoiding the lengthy and costly foreclosure process.If you have exhausted all options with your lender, can no longer make payments, and have negative equity in your home, a short sale is a great option to consider. Reach out to me for a consultation about your options.

For buyers, short sales can offer the opportunity to purchase properties at below-market prices, although the process can be complex and time-consuming. It's essential for all parties involved to understand the potential challenges and requirements of a short sale transaction. If you are interested in buying a short sale property, I can help you navigate through the process. See a list below of all short sales available in the Treasure Valley and surrounding areas.