Approved Short Sale Vs Unapproved Short Sale


The short sale process in Ohio is difficult enough but what makes the process even more arduous is when homeowners facing such a hardship hire a real estate agent that does not have extensive short sale experience. In order to qualify for a short sale and short sell a house, you must first acquire an “approved short sale letter” from your mortgage company. The process of acquiring a short sale approval letter generally begins with a homeowner in financial distress or in imminent default. A homeowner seeking an approved short sale does not have to be delinquent on mortgage payments or in default, but mortgage lenders typically do not approve short sales unless the homeowner demonstrates an inability to meet the mortgage obligation. In the eyes of the bank, a few valid reasons a homeowner may qualify for short sale include serious illness or death of a wage earner, significant loss of income due to unemployment or underemployment or other circumstances that are out of the homeowner’s control. It takes much less time to complete a bank approved short sale than it does to complete an unapproved short sale.


A big misconception among homeowners that are facing the possibility of a short sale is the question of whether you can even list your home for sale without the blessing of the mortgage lender. The short answer is, yes! You can list your home for sale knowing that you are currently in default or will soon be in default of paying your mortgage note. Here’s how it works, if you are behind on mortgage payments and believe that a short sale may be the best path forward, you can have a short sale real estate agent list your home for sale and accept an offer lower than what you currently owe on the home. This does not guarantee that your mortgage lienholder will approve the short sale price that you have negotiated with the buyer(s) and accepted. For this reason, we suggest that you contact us to discuss your situation and allow us the opportunity to speak directly with your mortgage lender before listing your home for sale. Allowing us to obtain an approved short sale letter on your behalf is a much better plan than moving forward with an unapproved short sale.

The Ohio Short Sale Process Step By Step


The short sale real estate process in Dayton, OH can be difficult to understand so we would like to break it down for you in its simplest form. Homeowners must seek out a short sale real estate agent when they are facing some sort of financial difficulty and need to sell their home for less than what is owed on the mortgage. Once the homeowner has contacted a local short sale real estate agent, the agent will then reach out to your mortgage lender’s asset manager for approval to list and sell the home as a short sale (pre-foreclosure). The buyer of your home will be a third-party (not the bank) with all proceeds from the sale of your home going to the mortgage lender. The mortgage lender can now do one of two things, they can forgive the remaining balance of your mortgage, or they can file a deficiency judgment against you, which will require you to pay the mortgage lender all or part of the remaining balance. For this reason, mortgage lenders make it mandatory that homeowners contact a reputable, licensed short sale real estate agent to negotiate on their behalf. Please look at the short sale graphic to your right, which explains the Dayton, Ohio short sale process step by step.

Key Notes: Short Sale Real Estate Process

  1. A real estate short sale is defined as the process in which a home is sold for less than the amount still owed on the mortgage.
  2. Sellers must hire a short sale real estate agent to negotiate and oversee the short sale process.
  3. The mortgage lender must approve a short sale before listing and advertising the home for sale.
  4. The difference between the sale price and the amount owed on the mortgage may be forgiven by the mortgage lender, but not always.
  5. The financial consequences of a real estate short sale are less severe than a foreclosure.
Short Sale Real Estate Agent Dayton Ohio

We know how to negotiate with banks and mortgage companies on behalf of homeowners who may be facing a possible mortgage foreclosure. It is important that you know your options and understand that a short sale is less detrimental than a foreclosure. If you’re located in the state of Ohio and you are trying to avoid a home foreclosure, please give us a call at (937) 750-5055. We have a 98% closing rate and have seen nearly every short sale scenario possible. Your privacy is protected; therefore, all communication is confidential, and your personal information will never be sold or shared.