What Is A Short Sale?

In a short sale, a homeowner owes more than what their home is currently worth. To avoid foreclosure, the homeowner negotiates with their mortgage holder(s) to accept less than what they owe on the property in order to sell it. As a result of this agreement, the seller is able to fend off foreclosure, the lender avoids taking on the burden of selling the property and the new buyer gets the property at a reduced price. Additionally, the seller will not be required to pay for the deficiency on the loan at closing.

Most mortgage companies require the homeowner to prove that they qualify for a short sale due to financial hardship, not simply because homeowner owes more than the home is worth. The short sale process is lengthy, often taking many months. A short sale or a foreclosure is a catastrophic event for a home seller and has serious legal, credit, and tax implications. Sellers are advised to obtain legal, credit, and tax advice before undertaking a short sale on their property.

Jennifer Sherrouse of Dorsey Alston, REALTORS has successfully represented buyers and sellers in their short sale transactions. Contact Jennifer if you're interested in a short sale for your property.