What is a short sale?

In simple terms, a short sale occurs when the sellers of a home on Cape Cod find that the property they own is worth less than the amount of the mortgage on the property.  Many Cape Cod home owners purchased at the height of the Cape Cod's real estate market, and many purchased with loans that allowed them to roll closing costs into the mortgage amount.  For a time, it was not uncommon to find loan programs offering buyers the ability to purchase with no money down, effectively financing 100% of the purchase price of their Cape Cod home or condo.  When the economic downturn depressed property values, some of these property owners found themselves "under water."

In a short sale, the buyer and seller agree on the price and then the seller negotiates with the lender (or lenders).  The lender may agree to a release of the mortgage in order for the sale to be completed. 

I'm a homeowner and I owe more than my property is worth.  Will a short sale work for me?
It depends on many factors.  Some owners of houses on Cape Cod have found that they have been able to talk with their lenders and modify the mortgage, reducing the monthly payments and eliminating the need to sell.  Even if the lender agrees to a short sale, the homeowner may discover they have a tax liability for the amount of the mortgage loan "forgiven" by the lender.  If you own a home on Cape Cod or a Cape Cod condo and you are considering a short sale, consider consulting with an attorney who has experience in this area.  Today Real Estate has found Attorney Bryan Reardon, of Dubin and Reardon, to be very knowledgeable.  Attorney Reardon can be reached at 508-771-0330.

I'm considering buying a home on Cape Cod.  What do I need to know about buying a home that needs lender approval for the sale?
If you need to purchase your Cape Cod home within a specific time frame, a short sale may not work for you.  It may take 3 months, 6 months, a year, or longer to obtain the lender's approval for the sale.  Some lenders are familiar with the process and are able to expedite the sale.  Other times, the holder of the mortgage is impossible to reach.  If you can wait to purchase property on Cape Cod and are patient with the process, it is possible to purchase a home or condo on Cape Cod at an excellent price.  Buyers interested in the purchase of a short sale are encouraged to consult an attorney familiar with the process.