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Short Sale vs. Short Payoff… What is the Difference?

Short SaleShort Payoff…Short WHAT?

 

What is a Short Sale?

The short answer is when you sell your home or in our case, your Dayton Ohio real estate for less then you owe the bank.  Now you could own Dayton Ohio real estate AND sell it for less then you owe the bank… BUT you would have to pay the bank the difference.  If you can not pay the difference, ie: bring cash to the real estate closing… then you need a Short Sale.  As part of a short sale, the bank agrees to release the lien on your Dayton Ohio real estate so you can sell and accept as full pay off on your mortgage less then the balance.

ALSO READ: Short Sale Steps: How to Avoid Foreclosure

What is a Short Payoff?

A short payoff differs from a short sale in that you still sell your Dayton Ohio real estate for less then you owe the bank, but the bank does not just forgive the difference.  With a short payoff the bank will require you to sign an unsecured loan for the difference.  They will still release the lien on your Dayton Ohio real estate but they just don’t forgive the difference like they would in a short sale

So, the sale of your Dayton Ohio real estate can go through and you are really not harmed that much as you are just paying back what was rightful owed in the first place.  You win by being able to sell your Dayton Ohio real estate and the bank wins by not losing everything, they just get their money back more slowly.

This is not a great option for the “I WANT to sell my Home” seller in the Dayton Ohio real estate market… it is for the “I NEED to sell my home” seller in the Dayton Ohio real estate market.  When you MUST sell your home AND the value of your Dayton Ohio real estate is less then what you owe AND you have the ability to pay the difference just not the ability to come up with the cash today, a Short Payoff is a good option for you.

Tell me again…Short Sale or Short Payoff.

If you are behind or will be on your mortgage and can not make all the payments, then a short sale is most likely the best option for you and your Dayton Ohio real estate.  If you are current or behind on your mortgage but could make the payments the a short sale is most likely not an option, but a short payoff may be. There other options too… the clients we work with sit down together with us and carefully review the entire situation to determine the BEST action plan based on the specific Dayton Ohio real estate situation they are in.

The most important thing to keep in mind is that you NEED a Dayton Ohio real estate professional that is an EXPERT at assisting home sellers with short sales.  A short payoff could be handled by some real estate agents well enough… but a short sale is a whole different issue.  You need an EXPERT, someone who has been trained and has experience in working with and closing short sales in the Dayton Ohio real estate market.  Visit our other site to view a report on selecting the best agent

 

Just help me NOW!!!

 

contact dayton ohio real estate and mortgage experts in short sales

 

 

 



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