A short sale is when you sell your home for less than what you still owe on your mortgage. A short sale may be a good solution for you if you owe more money on your home than it’s now valued at or you cannot sell your home for an amount that covers what you still owe on your mortgage. If your lender agrees to a short sale and you manage to sell your home you can then pay off your remaining mortgage balance.
When it comes to real estate, a short sale may not necessarily be the best solution for you, however it is an additional choice to be explored when looking at your financial options. As always, a debt relief attorney with experience in short sales is highly recommended when considering this option.
The borrower benefits by having the home sold, paying off the loan balance and having the ability to move at a negotiated time, oftentimes with relocation assistance.
A short sale is an option that helps borrowers avoid foreclosure by selling the property secured by the loan for an amount less than the current outstanding balance on the loan. A short sale offer must be approved by the lender because it is the lender who is taking a loss. The facts and circumstances in which the lender may approve a short sale are analyzed on a case by case basis.
You may also have concerns about the possibility of being unable to sell your home even if you qualify for a short sale. If this becomes reality it is possible that you may be able to transfer ownership of your property to the owner of your mortgage to release you from your current mortgage (see Deed in Lieu of Foreclosure).
Contact a reputable debt relief attorney to see if a short sale would be right for you and to find out if you qualify.