What is a Short Sale?
Borrowers who are facing foreclosure may ask the lender to accept a discounted payoff on their loan. This is called a "short sale" or a "short payoff". It allows the borrower to avoid a foreclosure action, and may offer the lender an expedited and less costly resolution to the situation.
What are my options?
Due to our economic conditions, which include rising unemployment and house prices upside down, the number of foreclosures vs shorts sales is on the rise. Short sales cost the lender less than a foreclosure and it allows the lender to minimize their losses. A short sale does not hurt the homeowners credit history as much as a foreclosure. A short sale negotiated for a homeowner will only affect their credit based upon their financial history but they can usually qualify for another mortgage sooner. Whereas, if they foreclose on there home, their credit history is affected for a minimum of 3-5 years.
Short sales are a definite option for homeowners versus foreclosures. This is not a short or easy process and you want a qualified organization representing your best interests during the mitigation process.
IMPORTANT NOTICE:Solutions Real Estate is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating. Seller acknowledges that Broker is not qualified to provide financial, legal or tax advice regarding a short sale transaction. Therefore, the Seller is advised to obtain professional tax advice and consult independent legal counsel immediately regarding the tax implications and advisability of entering into a short sale agreement with their lender/servicer. |