Short Sale
What is a Short-Sale?
A Short Sale, also known as a Short Payoff or Pre-Foreclosure Workout, is a program that allows a borrower to sell their house even if their current mortgage balance is worth more than the current house value. These sales are subject to lender approval and once approved, the lender will allow borrowers to sell their property for less than the total amount due on their mortgage. Therefore, the lender releases the borrower from the mortgage, preventing foreclosure.
How Can a Short-Sale Benefit a Homeowner?
A Short Sale can be one of the best options for many homeowners facing foreclosure. A Short Sale allows the homeowner to sell the property and remove the secured debt associated with the home. The seller can walk away from the sale with significantly less damage to his/her credit and save them from embarrassment of having their home go into foreclosure.Please click on the highlighted link for more information about the consequences of a Foreclosure VS. Short Sale
How Do I Qualify for a Short Sale?
In order to be eligible for a short sale, a homeowner must be able to prove to the lender that they are a victim to “hardship” and are unable to continue making payments on their mortgage.A hardship situation is one that is the result of some extenuating circumstance that forced the borrower into a position where they can no longer afford their mortgage payments. While every situation is unique, some common examples of hardship include:
- Unemployment or loss of primary income source
- Inability to work due to health crisis
- Mounting medical expenses
- Employment relocation
- Failure of business
- Bankruptcy
- Death of spouse or significant other
- Divorce or separation
