What if I want to sell my home but the value is less than the mortgage payments?
Sometimes homeowners get into the unfortunate position of having mortgage payments that are greater than the total value of their home. When this happens, and they want to sell their home, they can do a short sale.
Short sales are usually very complicated because they include speaking to mortgage insurers if the home had mortgage insurance placed upon it during the time of purchase, and because it’s often dependent on the bank’s agreement to split the difference between the value of the home and the remaining mortgage payments that are due. Once all of these issues are resolved the sale of the home can be completed but short sales are often the benefit of the buyer and not the seller.
The most common reasons sellers find themselves in the position of negotiating a short sale is because they can’t afford the home and need to downsize, or relocation has forced them to sell their home at a time when the market conditions may not be favorable for them to do so.