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A short sale happens when a lender agrees to accept less than the balance remaining on a home.  It is a way for sellers to avoid Foreclosure and sell their Inland Empire Homes.

It seems like a good idea for people who owe more on their home than it's worth, but that doesn't mean it is right for everyone.  Should you consider a short sale on your Inland Empire home?

Pros to doing a short sale:

  • You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.
  • You can still sell your property in a declining real estate market, even if you owe more than the home is worth.
  • buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn't previously afford.
  • While a short sale isn't ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.
  • If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.

Cons to doing a short sale:

  • The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt in some instances.
  • Short sales do stay on your credit report and may make it difficult for you to get a loan in the future.  Although, according to Fannie Mae's guidelines, you may be able to purchase a home again in as little as 2 years.
  • Short sales take longer to close than traditional home sales.  But, with the new HAFA guidelines, this timeframe has been shortened significatly as of April 5, 2010.

I can help you decide if a short sale on your Inland Empire home is right for you.  Call me at (909) 590-8288 or email me at Randy@TeamCharlton.com for more information about your selling options.

Brought to you by Randy Charlton of Keller Williams Realty.