WHAT IS A SHORT SALE?

A Short Sale is a win-win solution for the homeowner and the lender. The lender gets the highest price for a quick sale at a market price. The borrowers begin to get their credit restored and possibly get relief from possible future legal actions and deficiency judgments.

Short Sales occur when borrowers sell their property for a sales price less than the amount owed to their lender(s) after all sales expenses are taken into account. In order for this to take place the lender(s) must accept a discounted payoff; meaning the bank(s) get paid less than the full loan amount owed. In a short sale, the homeowners get complete relief from all of their mortgage debt.

The end result is your home is sold, the mortgage is satisfied (paid off) and you avoid a foreclosure or a bankruptcy in the event of hardship. Perhaps even better, your credit rating will almost immediately begin to improve because your credit report shows that your mortgage was paid in full.

To help understand how a short sale would relate to, or differ from a foreclosure, it may be helpful to point out that short sales can also be referred to as “pre- foreclosures sales” which, as the name implies, precedes the home being officially repossessed or foreclosed on the lender.  That is, the property is SOLD much earlier than the months it typically takes to reach foreclosure, allowing all parties to move on from the transaction sooner.

DO NOT LET THIS HAPPEN TO YOU!

Every mortgage company has their own set of processes through which they decide whether or not to accept a short sale, and while there are many similarities, each has its own requirements for approval.  As a seasoned third party mediator, we have a distinct advantage in negotiating with your mortgage company for your best result.

This site informs its users about foreclosure law designed to help them safely cope with their own legal needs. However, legal information is not the same as legal advice. The law as it applies to each individual varies with specific circumstances.