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SHORT SALE
We will handle the listing of your home while our professional short sale negotiators handle the negotiations with your lender(s).
What is a Short Sale?
A short sale occurs when an individual sells their property for less than what they owe on their mortgage.
Why conduct a short sale?
Avoid Foreclosure: One of the primary reasons for initiating a short sale is to avoid the more damaging consequences of foreclosure. A short sale, while still impacting credit, typically does less harm to your credit score than a foreclosure.
Debt Relief: In a short sale, the lender might agree to forgive the remaining debt after the sale, although this isn't guaranteed and can depend on the agreement with the lender. This can significantly reduce or eliminate the seller's financial obligation to the mortgage.
Faster Process: Compared to foreclosure, which can drag on for many months or even years, a short sale can be a quicker way to resolve the situation with the property. This speed can be crucial for sellers who need to move on financially or personally.
Negotiability: There's room for negotiation in a short sale. Sellers can sometimes negotiate the terms of the sale with the lender, potentially leading to better outcomes regarding debt forgiveness, moving expenses, or even the sale price.
Marketability: Properties in short sale status might still attract buyers looking for a deal, especially in a buyers' market. This could lead to a quicker sale compared to listing the property at its full mortgage value, where it might sit unsold.
Future Home Buying: After a short sale, with time and good credit management, individuals can often qualify for another mortgage sooner than if they had gone through foreclosure. This allows for a quicker return to homeownership.
Less Public Record Impact: While a short sale does appear on public records, it's generally seen as less severe than a foreclosure, which can have broader implications on one's reputation or future borrowing.
Lender Incentives: Sometimes, lenders are motivated to approve a short sale because it's financially less burdensome than the foreclosure process, which includes legal fees, maintenance costs, and the risk of selling at an even lower price if the property condition deteriorates.
However, the decision to conduct a short sale should be made with careful consideration, often in consultation with a real estate professional or attorney, as it involves negotiations with lenders, potential tax implications, and impacts on credit. It's not always the best solution for everyone, but for those in financial distress, it can offer a viable path forward.
Contact us using the form below if you have questions and would like additional information.