A Short Sale is an agreement in which your mortgage lender agrees to accept a payoff on the loan for less than the balance. Many lenders help agree to a short sale because they receive more of the loan balance in comparison to the amount they would gain from selling the property following a foreclosure. This process also aids in maintaining the home values in the community the property is located and helps the homeowner maintain a better level of credit compared to a foreclosure. In most instances, home-owners considering a short sale must be behind in your mortgage payments, provide evidence of economic hardship, and have little or no equity in the property.
A Short Sale is not a typical real estate transaction. Most real estate transactions involve the home seller and their real estate agent, the buyer and their lender, and their real estate agent. In a short sale situation, all of those parties in addition to the seller's loan servicer, a housing counselor, any junior lien holders, mortgage investors, and insurers may be involved too.
With so many parties involved in a short sale, the process can be difficult to complete without a qualified Realtor to help guide you and act as a liaison between all of the parties involved. You will want the advice and expertise of a Realtor who has your best interests in mind and will expedite the short sale transaction. It is essential to have a Realtor who won't allow you to miss a detail that could delay closing the transaction in a timely manner and to the specifics required by all parties involved.