Short

Sale

When a property is sold for less than the amount owed, the transaction is called a short sale: the home owner sells the mortgaged property for less than the outstanding balance of the loan and turns over the proceeds to the lender.

Negotiating a short sale is a difficult process, and our attorneys are experts at it. Presenting the appropriate documents in the proper legal format is critical to whether or not the lender is open to negotiation, as is the way the borrowers situation and information are represented to the lender.

Typically, the lender will ask for a Brokers Price Opinion (BPO) and financial information about the borrower. This stage is very sensitive because the owner must prove they do not have the income to continue to make payments while being careful not to implicate themselves in mortgage fraud. Banks are increasingly willing to allow a short sale if they can be convinced that the sale will result in a smaller financial loss than foreclosing.

By entering into a voluntary agreement with the lender, owners can stop a potential mortgage foreclosure and persuade to the lender to agree to forgo suing for the debt deficiency. If the lender accepts such an agreement you not only avoid a foreclosure on your credit report but the deficiency is forgiven and you will be in a much better position to qualify for a loan in the future.

We can make this process simple for you, as we do all of the heavy lifting for you. Please contact us for an in-depth explanation and answers to all of your questions.