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Inheriting a home in foreclosure or upside down on the mortgage?
You still have options!
In the event of a loved one’s passing, the last thing you should have to worry about is navigating a complex legal process. With the help of our team of probate attorneys, that process doesn’t have to be draining.
About Short Sales
A short sale is a sale of a property in which the proceeds from the sale are not enough to pay off the outstanding mortgage balance. This can occur when the homeowner is unable to make their mortgage payments and is facing the possibility of losing their home to foreclosure. In this case, the homeowner may be able to sell the property through a short sale in order to pay off the mortgage and avoid foreclosure.
In a short sale, the homeowner must negotiate with the lender to accept the sale proceeds as payment in full on the mortgage. This can be a complex process, as the lender must agree to the sale and may require the homeowner to provide documentation of their financial hardship. The lender will also typically require the homeowner to list the property for sale at a price that is below the outstanding mortgage balance.
If the lender agrees to a short sale, the homeowner can sell the property and use the proceeds to pay off the mortgage. The homeowner will be released from any personal liability for the mortgage, meaning they will not be required to pay any deficiency remaining after the sale.
Short Sale Solution
If you’re facing pre-foreclosure and are considering a short sale as a solution, it’s important to act quickly. The longer you wait, the less opportunity and time you will have to negotiate with the lender and find a buyer for the property. It’s a good idea to communicate with your lender as soon as you may start having trouble with mortgage payments, as this can increase the chances of being able to negotiate a short sale. If you would like us to negotiate with your lender on your behalf, please reach out to us, we have a 96% approval rate.
NOTE: There is no charge to you!!
Risks of Short Sales
While a short sale can be a way for homeowners to avoid the time and expense of a formal foreclosure process, it’s not a perfect solution. It can be a lengthy process, and there are no guarantees that the lender will agree to the sale. In some cases, the lender may require the homeowner to sign a promissory note agreeing to pay back the deficiency at a later date.
Short sales can also have negative consequences for the homeowner’s credit score if you missed payments. If payments are missed, they are reported to credit bureaus as a negative event. The homeowner may also be required to pay taxes on the forgiven debt.
There are several factors that can affect the likelihood of a lender agreeing to a short sale. These include the value of the property, the amount of the outstanding mortgage balance, the lender’s policy on short sales, and the homeowner’s financial situation. It’s important for homeowners to carefully consider these factors and seek the advice of a housing counselor or attorney before proceeding on your own.
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