The Real Deal on Foreclosure vs. Short Sale
It’s likely you’ve heard the term “short sale” thrown around quite a bit. But what, exactly, is a short sale?
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens’ full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less than from a foreclosure, both often result in a negative credit report against the property owner.
To be eligible for a short sale you first have to qualify!
To qualify for a short sale:
- Your house must be worth less than you owe on it.
- You must be able to prove that you are the victim of a true financial hardship, such as a decrease in wages, job loss, or medical condition that has altered your ability to make the same income as when the loan was originated. Divorce, estate situations, etc… also qualify.
Thinking about a short sale? I can help you short sale your property and never pay the bank another penny.
Send me an e-mail at email@example.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 954-592-4120. Discover how other sellers successfully completed a short sale.
- We do not charge any upfront fees to the homeowner
- We only work with title companies who specialize in short sale closings
- Our processors are professional and detail oriented
- We communicate with you in detail about every step of the process
- Our cutting edge software systems provide us with unparalleled efficiency and accountability
- We understand the HUD Pre-Foreclosure Sale (PFS) Program for FHA insured loans
- We are Certified Distressed Property Experts