A short sale is basically just an efficient economical solution to a problem. This way borrowers can avoid additional damage to their credit, and the lender will lose less money than would result in the case of continued non-payment or a foreclosure.

• In a short sale, the lender agrees to reduce the balance of a home loan due to a financial hardship of the homeowner. In exchange, the house is sold and the owner/debtor gives the proceeds to the lender.
• A short sale does not necessarily cover the remaining balance unless settlement is indicated explicitly in the lender’s acceptance.
• Even is a Notice of Default has not been issued, lenders may choose to accept a short sale offer. This has been increasingly the case since the vast number of mortgage failures in recent years.
• Short sale can be the best option for borrowers who owe more than their house is worth to avoid foreclosure.
• In a short sale, both the borrower and lender agree to the sale, which is different from a foreclosure where the lender forces the transaction.

Mortgage lenders usually have loss mitigation specialists who evaluate short sale offers and have established criteria for which offers they will accept. These can vary widely from one lender to the next. The amount of equity will be calculated with an appraisal, a Broker Opinion of Value, or a Broker Price Opinion.

Additionally, it is not uncommon for there to be multiple levels of approval and unique conditions. For example, there may be HOA liens, second mortgage holders, or other parties that also need to approve the short sale. These oftentimes complex factors make it hard for inexperienced folks to navigate a short sale. To make sure your short sale goes off in time to avoid foreclosure, you need experienced professionals to consult and assist you through the process.

Our services are always free. You may be surprised to discover additional solutions that suit your situation even better than a short sale. Call us to discuss your options!