Minnesota Short Sale FAQ’s

Minnesota Short Sales, Short Sales Minneapolis MN

If you are new to the world of real estate and the concept of a short sale, then you are not alone. A short sale is not something many people were aware of until the problem of foreclosure became a possibility. Now short sale is probably a term you hear thrown around a lot these days. Below are the answers to some of your common questions regarding short sales in Minnesota.

What, exactly, is a short sale?

A short sale, in everyday terms, is a sale of a house in which the lending company (aka the bank) is willing to accept an offer that is less than what is owed on the mortgage. The home owner is able to walk away without foreclosing their home and the lender is able to salvage some of the money on their investment.

Who is Involved in a Short Sale?

There are four main parties involved- the home owner, the lending company, the professional MN short sale agent and the potential buyer. The home owner and the short sale agent will work together. It is up to the short sale agent to speak to the lending company about negotiating a deal in which a short sale can occur. In general, the home owner and the potential buyer are left out of the deal until the final decision has been made.

Why Should I Go with a Short Sale?

There are three main reasons to opt for a short sale in Minnesota, if you have the option. First of all, you will avoid foreclosure and the problems it can cause for your credit report. Secondly, you will avoid the emotional distress that surrounds foreclosure. And, finally you will pay off your mortgage and be able to move on without the constant reminder that your house has been foreclosed.

Will I qualify for a short sale?

This depends on your current financial situation. If you can demonstrate that you are experiencing financial hardship, then you could qualify for a MN short sale. Many people who have been recently divorced or separated, lost a spouse, lost their job or took a pay cut, have succumb to a serious accident or illness or have incurred a substantial amount of debt will qualify for a short sale. You will need to provide evidence such as termination letters, bank statements, medical bills and pay slips. You may also be able to qualify for a short sale even if you have not missed any mortgage payments if you have a compelling reason why your payments will stop in the future.

How Long with the MN Short Sale Process Take?

This depends on a number of factors, most importantly, the efficiency of your bank. You can expect a short sale to take between 30 to 60 days on average but it might be longer than this in some circumstances.
Are there any additional costs I should be concerned about with a short sale?

As any home buyer knows, there seems to be hidden fees and taxes around every corner. With a short sale, this is not the case. All additional expenses that are associated with the sale of the home including commission, taxes and closing costs, are transferred over to the lending company.