Short Sale
Frequently Asked Questions

Q: What is a Short Sale?
A: Short Sale is the sale of real estate in which the market value falls short of the balance on the mortgage. A lender may accept a short sale offer and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments and is facing foreclosure. By accepting a short sale, the lender can avoid the lengthy and costly foreclosure process, and the owner is able to sell for less than what he owes, thereby avoiding foreclosure altogether.

Q: Why would I consider a Short Sale?
A: If you can no longer afford the home, and a sale is your best option, but you are also contending with the issue that there is no equity in the property a short sale may really save you.

A new buyer may be able to make an agreement with the lender to purchase the home at a discounted amount. Foreclosure is a costly process. A buyer can represent an offer with the proper submission package, showing the lender how they will save money by selling now than waiting until the foreclosure sale. If it is acceptable to the lender, you will avoid foreclosure on your record.

Q: Can I make money from this kind of Sale?
A: Lenders do not allow you, the seller to receive money from the sale. They're offering a special discount, less than what you owe, because they feel that it's in their best interest to do so.

Q: How do I move on if I dont have anything left?
A: If you are strapped for cash, to help you move on, look into arrangements such as selling some furniture, or other items that may be of interest, such as valuable antiques to the seller, or to other potential buyers in the classifieds.