You’ve probably heard it on the news, read it on the internet, or know a friend or two who are doing it. What, exactly, is a Short Sale? In a short sale, a homeowner who cannot keep up with their loan asks the lender to take a dollar amount less than what is owed on a home’s mortgage, and forgive the remainder of the unpaid debt.
So if a borrower has a mortgage balance of $250,000 and finds a buyer who will pay $150,000 for the house, the lender agrees to accept that $150,000 and close out the loan.
Ideally in a short sale, everyone wins. Borrowers avoid the ugly foreclosure process that destroys their credit, while lenders recoup more of their costs than they would by spending the time and money it takes to foreclose and resell the property.
If you are in default or run the risk of foreclosure, we would like to offer you our services to show you that there ARE options other than losing your home.