What Exactly Is A Short Sale?

A Short Sale is a transaction where the net proceeds from the sale won’t cover your Total Mortgage obligation and closing costs, and you don’t have any other sources of money to cover the deficiency.

When a Short Sale is executed correctly, it is a Win-Win-Win Solution for the Distressed Homeowner, their Lender, and the New Buyer. The Lender will receive the highest Marketable Price while avoiding the higher costs associated with a Foreclosure, the Borrowers Avoid a Foreclosure from being entered onto their credit, and the New Homeowner gets to Purchase a property at Today’s Most Competitive prices. Generally, the borrower also receives relief from possible future legal actions and deficiency judgements.

Short Sales occur when a borrower sells their property for a sales price that is less than the amount that they owe to their lender(s). In order for this to take place, the lender(s) must accept a discounted payoff. This means that the bank gets paid less than the full loan amount owed. In a Short Sale, the homeowner usually receives complete or partial relief from all of their mortgage debt after the sale is finalized and avoids an financially crippling Foreclosure or Bankruptcy on their credit report.

The end result is that you Sell Your Home, Satisfy or Settle Your Mortgage, and Avoid a Foreclosure or a Bankruptcy.

Why Consider a Short Sale vs. Other Available Options?

When facing a Financial Hardship with your Mortgage, there are always several choices to consider. The following sections explain why a Short Sale is often the Best Financial Choice when compared to other choices.


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