A Short Sale is a process by which a borrower/homeowner sells their property with the approval of their lienholder(s) for an amount that is less than the amount due to pay the lienholder(s) in full at closing. The homeowner, lists their property for sale with a real estate agent and goes through the process of selling the property, garnering an offer from a buyer, and providing that offer to the bank for review.
Once the listing agent has procured an offer to the seller and the seller accepts the offer with the buyer, it is then submitted to the lienholder(s) along with the lender specified Short Sale Packet for their review.
Depending on the lienholders timeframe, it could take anywhere from 60 to 120 days to get a short sale approved. What most homeowners would be seeking is a full short sale approval waiving any deficiency balance by the lender and further liability under the note. In most cases this can occur. In some cases the lender will require a promissory note, cash at closing, and/or a combination of both. These outcomes are all lender specific and unique to each borrower/homeowners financial situation, loan type, property type, etc…
This is just a short example of what a short sale looks like, and the full extent of a short sale is determined by each individuals circumstances and each lienholders guidelines. There may also be significant credit and tax implications in which financial, tax, and legal counsel is needed by the borrower/homeowner.
If you are in a situation where you believe you are on the verge of becoming late on your mortgage, or are already at the stage of missing payments, do not hesitate to call us for a Free Consultation about your situation and whether a short sale is a good option for you.
Time is of the essence, and the more time you have to work through this process the better the outcome will be for you to successfully Short Sale your property.
I look forward to speaking with you.
Albert Clark
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