What is a short sale and short sale loan?

The name short sale refers to the fact you probably have to sell your home for less than it’s worth. (It doesn’t mean the sale process is shorter than a regular sale.) Short sales could apply to your primary residence, and investment property, or even a timeshare.

You may need to sell your home through a short sale if you’ve fallen behind on mortgage payments and can give your lender evidence that you don’t have any assets to make up for the missed payments. You may also owe more than the home is worth (maybe due to a fall in the value of the housing market, or just a drop in your home’s value).

As the homeowner, you may negotiate a sale with a buyer – but the deal must be approved by your lender. Because you’re likely in debt, all the money from the sale will go to your lender. (And you might have to pay off the difference if your home sells for less than the loan balance.)

To negotiate a short sale, you need a real estate agent who is experienced in short sales – plus a trusted lender on your side.

After your short sale, you might find it hard to get another home loan from a conventional lender. You may need to wait four to seven years. But UMe wants to hear your story – and maybe we can give you a loan right away.