What is a short sale ?
A property which has more mortgage debt
and liens than its value is very difficult to sell. Without
proper debt negotiation, a seller would have to pay to sell
their house.
When the mortgage is three
months behind, lenders will often accept a lower (short)
payoff to avoid a foreclosure. Banks lose money in
foreclosure and have created a department called: Loss
Mitigation. My company works with Loss Mitigation to reduce
the debt and process a “short sale”. This will allow a
pre-foreclosure sale with no costs to the seller. The banks
discounted payoff will pay for the sellers closing fees and
allow them to avoid a foreclosure auction their credit
history. The bank will need an Authorization to release
information allowing my company to represent the sellers.
They will also ask for paperwork similar to the mortgage
application. My company will guide sellers, agents, and
Attorneys through the process.
