Archives for category: Short Sales

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via The Prompt Notification of Short Sale Act.


What is a short sale? It’s when the borrower (seller) cannot sell the property for enough money to cover the pay off, which means bringing money to closing. It’s also called being upside down because in normal circumstances the seller expects to receive money at closing. A short sale involves the seller’s lender who must approve the sale because they are the ones taking the shortfall.

The news on the street is that short sales are going to be up this year because of continued high unemployment and the reset of some adjustable rate mortgages.

Being in this position can be the result of many different sets of circumstances including property depreciation or too little equity from the beginning.

Short sales have earned a reputation for taking a long time, involving lots of work, and even more patience for everyone in the process. However, the feds have implemented guidelines that should ease the process and make it more attractive to the borrower. Right now its benefit is avoiding a foreclosure and its ramifications.

If you decide to go the short sale route be open and cooperative with your agent.