Short Sale Services

Homeowners facing foreclosure often times seek short sale services to avoid abrasively affecting their credit score. There are important parts of short sale information that a home owner must take into consideration before they hand their home back over to the lender.

In real estate, a short sale is when a bank or mortgage lender agrees to accept a discounted loan balance based on the fact that the current homeowner can longer provide payments on their mortgage. The home owner then sells the piece of property for less than the balance of the loan and the lender most times, accepts the payment as full satisfaction of the debt. A mortgage short sale is determined by the cost of the selling price minus the appraised value.

The homeowner avoids having a foreclosure on their credit history and relieves themselves of the financial hardship involved in owning that property and also the responsibilities involved. The homeowner also sees other benefits from short sale services. The homeowner gets an immediate purchase agreement, avoids deficiency judgment, minimizes creditor collection impact, gets an independent professional evaluation of the property and guidance throughout the entire process to ensure it is working effectively and is void of any discrepancies.  

The lender will opt for a short sale if they believe that it will end up in a smaller financial loss than foreclosure. The lender has a loss mitigation department which processes short sale transactions.

Important short sale information includes required paperwork from the lender, your own research of the neighborhood, photographs of the home’s interior and exterior and a handwritten hardship letter from the homeowner.