In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is “doing the other a favor;” a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment. Borrowers are able to mitigate damage to their credit history, and partially control the debt.
In some cases home owners can purchase a home at the close of a short sale while most homeowners will be able to buy a home in as little as two years. And typically, a short sale does far less damage to the homeowner’s credit than a foreclosure does.
If you would like to explore the possibility of a short sale for your property, avoid foreclosure, and potentially save your credit rating, please get in contact with us at 1-888-483-0823.
