What is a short sale? Why would I try to sell my home that way?
A short sale occurs when a lender allows the sale of a home to be completed by agreeing to release the mortgage lien on the property for less than what is owed on the loan. This kind of deal is typically negotiated between the bank and the homeowner under the following conditions:
- The homeowner is facing financial hardship (from loss of income, mortgage rate adjustments, illness, etc.) that makes it difficult or impossible to keep the mortgage payments current.
- The house is worth less than what is owed on the mortgage.
For homeowners facing foreclosure, selling their home in this fashion can be the thing that keeps their credit from getting completely destroyed. Unfortunately, many homeowners don’t find out that a short sale is an option for them until it is too late.
If you are behind (or about to get behind) on your mortgage payments, the worst thing you can do is to ignore the situation. Time is your worst enemy and your options diminish significantly as the days tick away. Talk to a real estate professional who understands the foreclosure process so you can make the smartest possible decision for you and your family.