Selling may be the best option for a homeowner looking for an answer to their financial stress.
A short sale or short payoff occurs when a lender agrees to accept less than the outstanding loan amount in exchange for a release on the lien to the property (the collateral). Even if there is more than one lien on the property, a short sale may be possible if both lenders agree to accept less than the outstanding loan balance.
Example situations where a short sale may be best:
•Declining real estate values;
•Unexpected health issues resulting in difficulty making mortgage payments;
•Lending rate increases on adjustable rate loans;
•Over-extended borrower with multiple mortgages;
•Job loss or transfer.
Tara Clark Newberry, Esq. has over 10 years of real estate experience and has negotiated short sales for clients with all of the major banks. We have persuaded many servicers to postpone foreclosure sales in order for a short sale to occur, preserving our client's credit and loan worthiness for the future, and saving the bank unnecessary foreclosure costs.
We have closed sales within 45 days when a postponement of a sale was not an option, and have leveraged files to the top of negotiators stacks in order to get an approval quickly when a foreclosure sale is pending. Whether you are a homeowner or a seller's agent, you need a real estate attorney on your team.