What is A Short Sale?

Foreclosure on a  home has serious consequences for the family, the community, the  local housing market and the economy.  However, there are options available to troubled homeowners experiencing financial hardships.  Banks, today are more accepting of a short sale ageement thereby relieving the homeowner of the dire penalties resulting from a foreclosure. 

A short sale is an agreement by your mortgage lender to accept a payoff on your loan for less than you owe on the mortgage that is secured by your home as collateral.  Many lenders will agree to this arrangement because they receive more of the loan balance from a short sale than foreclosing.  This also benefits the homeowner in maintaining a better level of credit as compared to the consequences of foreclosure.  However, homeowners seeking a short sale must meet certain criteria to qualify.   Also, a short sale is a complicated process.  It is not a typical real estate transaction and can be difficult to complete without a qualified and experienced Realtor to guide you and act as liaison between all parties involved. 

Today, 1 out of 10 homeowners in America are behind on their mortgage payments.  Nearly 50% of all foreclosures occurred without homeowners ever understanding their options.  If you or someone you know is facing the possibility of foreclosure, it is critical that you understand the foreclosure process and your qualifications before it is too late.