Some of you may have heard of a Venice short sale and may be wondering what that means. A short sale can also be called a short pay or pay off when it comes to describing what it is. A Venice short sale is when a lender approves the sale of a home and the proceeds to the lender are less than what is owed on the home by the seller. The lender or bank also agrees to forgive the difference to avoid a foreclosure on the property. These differences also include escrow and title fees as well as property taxes and real estate commissions. The seller is usually not willing or is unable to cover the difference on the property. Also, the seller must prove that they are having a financial hardship in order for the lender or bank to approve the short sale.
When you are going through a Venice short sale you will have to qualify for a financial hardship. You may be wondering what would qualify for a financial hardship. Several of the things that could constitute as a financial hardship are unemployment, reduced income, divorce, medical bills, death of a spouse or family member, job relocation or military service to name a few.
Now that you know what a Venice short sale is you may be wondering why a lender would approve a short sale. If the lender or bank decides to reject a short sale, they will wait several months to get the property back through foreclosure and then it will take several more months to get it sold. During this length of time, the bank or lender has most likely received no payments and the market has probably dropped further. There are other factors that could influence your bank’s decision on your Venice short sale. It includes the liability it assumes when they owe the property after a foreclosure.