A short sale is the sale of real estate that falls short of the balance owed on a mortgage loan. Short sales occur when the borrower is unable to pay a mortgage loan, and the property’s value is less than that of the remaining loan balance, so the lender agrees to sell the property for a lower amount to a third party and discontinue the payments and ownership of the borrower. The borrower does not receive profit from the sale, as the lender accepts less than the total amount due.
A short sale is recommended over foreclosure because it has a less severe effect on the borrower’s credit report, and allows them to repurchase property in the near future, while still relieving them of their mortgage burden.
At the Stone Haven Law Group, we work with experienced brokers, and oversee the entire short sale process to ensure that your best interests are protected, and your second and/or third mortgages are addressed in their entirety. Call us today to learn whether a short sale is right for you.