What is a Short Sale?

A "Short Sale" is the sale of a home for less than what is owed to the lender. For example, if your home is currently worth $250,000, and you have a loan in the amount of $270,000 and are unable to make your mortgage payments, then a Short Sale is certainly a consideration when there is proof of hardship and financial distress.

Financial distress causes tremendous strain on families. It comes in many forms such as: job loss, debt, divorce, serious illness, medical bills or a death in the family. Many people do not realize that they are really "distressed", but as a result their family home may be in serious jeopardy. Often times people learn of "Short Sales" after it is too late, as they have attempted to face the hardship and heartache of their situation alone without any form of professional assistance.

Given the current state of our real estate market here in Colorado Springs and what it is doing to so many families, Chloe Cantwell took it into her hands to become Short Sale Experts! She has dedicated her time and effort to understanding the critical issues that distressed homeowners are facing. CDPE agents understand the full range of solutions available and are ready to help every step of the way!

Examples of a hardship are:

Payment increase or mortgage adjustment, Loss of job, Business failure, Damage to property, Death of a spouse, Death of family members, Severe illness, Inheritance, Divorce , Separation, Relocation, Military service, Insurance or tax increase, Reduced income , Too much debt, Incarceration.

What is the Insolvency Requirement?

A homeowner must not be able to pay down the mortgage. A short sale client has to be financially insolvent, meaning that they owe more than they have or that they do not have liquid cash or assets that could be used to buy-down their mortgage.

If a homeowner qualifies to sell their property short, then it is imperative that they begin this process before it’s too late. It is possible to stall a foreclosure if the lender(s) knows that a homeowner is actively and aggressively marketing their property for sale. Once an offer is received from a buyer on the property, the lender will negotiate the acceptance, and the buyer will purchase this property short.