WHAT IS A SHORT SALE?

A 'Short Sale' is named based on 'shorting' a bank on the amount due on a given mortgage. Specifically, a short sale is when the bank lets a distressed homeowner, who owes more than his property is worth, settle up by paying less than the total owed.

Generally, short sales are used when the homeowner is both behind on payments and owes more than the property is worth as a way to create equity for the investor so they will purchase an otherwise non-performing asset for the bank. Many homeowners have turned to real estate short sale as a way to avoid foreclosure, especially after having unsuccessfully tried other loss mitigation options such as loan modification. With a short sale, you may not get to keep your home, but you get to avoid foreclosure and the stress that comes with it.

Short sales are difficult to pull off, requiring negotiations with many layers of bureaucracy. Frequently, the bank you are sending your payments to is not the bank that owns your loan. In fact, it may have passed through the hands of two or more banks. Therefore, not every bank will agree to a short sale, and not many people are willing to buy short sale homes. That’s why it pays to work with professionals like shortsalesafe and we will make sure you take the right steps. After all, it’s not just your home at stake—it’s also about your financial future. With good planning and a dedicated team, you can sell short sale and get your mortgage cleared—and start rebuilding your finances right away.