Author Box
Articles Categories
All Categories
Articles Resources

What Is a Short Sale? And How Does It Work?

March 28, 2012 | Comments: 0 | Views: 92

If someone misses a few payments on their mortgage and cannot afford to continue to make them, it is only a matter of time before they will be in foreclosure. A foreclosure results in eviction from the home, loss of the ownership of the property, a negative impact on a credit score, and still having to pay off the remaining balance of the debt. A foreclosure has a significant impact on the well-being of someone and their family, but a short sale offers the homeowner a way to avoid foreclosure.

A short sale is when the homeowner is granted permission by their lender to sell the property for less than the purchase price to satisfy the remainder of their mortgage agreement. The proceeds from the sale are used to pay off the existing mortgage and the remainder of the debt is negotiated with the lender to be forgiven or settled with some form of payment. It can allow the homeowner to get out of an upside down home, avoid foreclosure, and settle the debt that they cannot afford.

There is a benefit both for parties involved because the process will forego any legal action and involvement by the courts and be completed in less time than a foreclosure. The borrower is also able to avoid the big time credit report hit that a foreclosure will result in and can get the borrower in better financial standing in a short amount of time than a foreclosure would. The Lender in turn gets immediate payment of a portion of the loan and avoids the potential for property destruction that a disgruntled foreclosed tenant can leave behind in their home.

There are specific requirements for a short sale that differ from lender to lender, and a short sale attorney should be contacted to assess your situation and determine if a short sale is right for you. You may be eligible for a short sale if you have experienced a recent financial hardship, such as a job loss, major medical bill, or divorce, or you own more on your house than it is currently worth. You may also be eligible if you currently cannot afford your mortgage payments and you are not capable of modifying your current home loan. If you fall into one or more of these categories and then you may qualify for a short sale, and should contact a short sale attorney so they can help you understand how the process works, and what you will need to do to get the ball rolling.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

What Is A Short Sale


Short Sale


Short Sale Jacksonville


Short Sale Attorney


Short Sale Lawyer

The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Liva l Real Estate > Buying l November 20, 2012 lViews: 258

The main reason why people tend to be apprehensive about moving homes is that it entails packing everything in the home, transporting it and then unpacking it in the new home. The entire process of

By: Ringo Star l Real Estate > Moving Relocating l October 27, 2012 lViews: 211

There are a number of benefits to owning a second home. Buying to let is a long term investment. The property will usually accumulate value over time and also can generate rent on a shorter term

By: Alan Trotter l Real Estate > Investing in Real Estate l October 19, 2012 lViews: 241

Building a home, especially your first one, can be an incredibly daunting task - there are a number of factors, including budget and planning, that must be taken into account before any sort of

By: John K. Taylor l Real Estate > Building a Home l July 10, 2012 lViews: 333

When you're ready to sell your house, the first thing you'll probably do is find a real estate agent to help you through the process. It can be so inviting to seek out the discount Realtors who offer

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 263

You see the signs everywhere, especially in a strong economy: For Sale By Owner. For some reason, many people believe they'll do a better job of selling their homes without the assistance of a real

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 241

In today's real estate market, potential buyers frequently find short sale homes and houses close to foreclosure. Some homes have already been foreclosed and are now for sale by financial

By: Jeremy P Stanfordsl Real Estate > Foreclosuresl June 01, 2012 lViews: 203

Buying foreclosures at a distance can be challenging. Use these tips to help you make good decisions.

By: Aloysius Aucoinl Real Estate > Foreclosuresl June 01, 2012 lViews: 164

Fearing losing their house is quite nerve-racking for a number of house owners. Regrettably, foreclosures are happening a lot more frequently than previously and are frequently a result of breakup,

By: Steven Johanssenl Real Estate > Foreclosuresl May 31, 2012 lViews: 184

If you are trying to decide whether hiring a foreclosure attorney is worth your time, maybe it is time for you to take a better look at your current situation. If you have been served with a

By: Abraham Avotinal Real Estate > Foreclosuresl May 31, 2012 lViews: 157

Home foreclosure as suggested by its name means a scenario where a property owner is not able to make repayments of principle and interest repayments on their home loan, therefore the loan provider,

By: Demetrius Weatherspoonl Real Estate > Foreclosuresl May 30, 2012 lViews: 199

On the subject of purchasing a new house, most likely the primary thing on everyone's brain is if they will be able to locate the home they desire within their budget. It looks like everywhere you

By: Demetrius Weatherspoonl Real Estate > Foreclosuresl May 30, 2012 lViews: 165

Discuss this Article

comments powered by Disqus