A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens” full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties. You as the homeowner will know all the obligations to repay any deficiencies, IF ANY, before the closing.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. While credit is also typically damaged much less than from a foreclosure, both often result in a negative credit report against the property owner.
With a short sale; your debt can be paid in full. With a foreclosure, you may owe “left over debt”.
Call for more information on a Short Sale. I am a experienced agent that is Certified in many areas of Short Sales. I am a Short Sale professional with Bank of America, Chase Home Loans, Citi-Mortgage and many other lenders.
It”s a diffcult time in your life, let someone who understands and cares about your Short Sale. Please contact me with any questions about short sales.
Suzi Stemper, CDPE, SFR, SFI, NABPOB