If you have a home or other real estate that you are having problems paying on you may want to consider doing a short sale. A short sale is something that is increasing in popularity with people who have homes that are facing foreclosure.
What is a short sale?
A short sale is the sale of a house when the proceeds fall short of what the owner still owes on the mortgage. You will find that many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. If you are interested in doing a short sale you have to get the bank to approve the offer that was made on the home and sometimes they do not.
How do you do a short sale with the bank?
In order to do a short sale, you lender must agree to accept less than what is owed on the mortgage. You will have to negotiate this with your lender's loss mitigation department. Usually you will not be able to get a lender to accept a short sale proposal unless a Notice of Default has been issued on the property.
When do you consider a short sale?
Typically short sales are done when the seller is facing foreclosure. Banks will typically accept a short sale on a property facing foreclosure if they think it will result in a smaller financial loss than foreclosing on the property.
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