If so, it sounds like you're "underwater" like so many Americans these days. Any of these senarios puts the borrower in a very stressful and emotional situation ,and you need a professional that is experienced and understands the process to guide you through it. You need to know that you are not alone, and it is not your fault.
What is a Short Sale?
To clarify, a short sale is a transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan. Essentially, the bank is willing to accept a payment of less than the full balance owed, and the borrower is able to satisfy the loan, thusly avoiding foreclosure.
If your home is worth $100,000,
But your mortgage is $110,000, - you owe more than your home is worth!
We list and sell your home for $100,000,
After all fees including commission, $92,000 is left to satisfy the $110,000 mortgage,
The servicer/bank discounts the mortgage by $18,000.
Your credit report reflects “preforeclosure in redemption”, not "debt discharged due to foreclosure.”
Why would a bank/lender agree to this?
It all comes down to money. The lender is presented with a choice between accepting a short sale, and taking a smaller loss, or putting the property through foreclosure and taking a significantly greater loss. A Short Sale is a form of loss mitigation, so accepting the Short Sale “mitigates the loss.”
What can I do for you?
I am part of the Bay Area Short Sale Specialists. We are a team of real estate professionals who truly understand the short sale process, and have represented buyers and sellers in countless transactions. We also have a CPA and attorney on our side who specialize in short sales. We know the process, and we can walk you through it to ease your stress and anxiety, and help you avoid foreclosure.
pressure confidential consultation to see if this is right for you!