If you are currently facing a foreclosure on your property a short sale is a possible alternative. A short sale is the act of a lender approving a property sale for an amount that is less than what is owed on the mortgage. The reason why it is called a short sale is the lender is going to end up “short” on the deal. The lender will also then be responsible for paying the closing costs real estate commissions.Understanding a Barrie Short Sale

Qualifying for a short sale

In most cases you need to be in default on your mortgage, which means that you have not paid your loan payment for three months. Quite often there will also be a foreclosure case that the lender has filed.

If you are currently facing a foreclosure you can talk to Ian or Caroline Hocking about your options. The procedures and requirements for a short sale are constantly changing and we will be up to date on the latest qualifications.

Credit Rating

A foreclosure will have a dramatic effect on your credit rating and may stay on your credit file for seven years. A short sale will still affect your credit, but not nearly as much of as a foreclosure will.

For a buyer

A Barrie short sale can translate into a good deal for a buyer. One thing to keep in mind, however, is that the house will be sold as is with no warranties and no repairs will be made to it before it is sold. While some of these properties are in good condition, many are in a state of disrepair and you will have to cover the costs of fixing up the home yourself once it is yours. This means that some number crunching needs to be done before purchasing a short sale.

Processing times

It usually takes longer to process a  short sale than a traditional Barrie home sale since there is more paperwork involved and it needs to go through the bank for approval. It can take anywhere between 3 and 10 days depending on the bank to find out if an offer will be accepted and you could end up going back and worth with sign backs for another 3-10 days.

If you are interested in more information about buying or selling a short sale please give Ian or Caroline Hocking a call direct at 705-252-7939. There are a lot of factors to consider with a short sale and we would enjoy the opportunity to go into further detail with you anytime.

Filed under: BarrieBarrie Buyers informationBarrie Real EstateBarrie Sellers informationDistrictMortgage InformationSimcoe County

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