Short Sale Resources for Homeowners

A Short Sale Occurs

A short sale occurs when a lender is willing to accept less than the full mortgage pay off. They short the loan. It is when the lender absorbs the loss and allows the Borrower’s debt to be forgiven.

A property is a candidate for a short sale when all liens, plus costs of sale, exceed the market value. Liens include mortgage liens, mechanics liens, tax liens, unpaid judgments, unpaid HOA fees.

A short sale is form of pre-foreclosure sale in which the mortgagee agrees to accept less than the loan amount to avoid foreclosure. The good news is that the lender pays the closing costs, commissions, title fees, and repair costs. The seller gets the home sold, the loan satisfied, and avoids foreclosure.

Homeowners facing financial difficulties often make the mistake of avoiding their lender, which is exactly the wrong thing to do. If you are unable to make your mortgage payments, contact your lender as soon as possible and explain your situation. Find out your options from your lender.