A Short sale is when the lender of Record agrees to discount their payoff to accommodate a sale when:

   1) The Seller has experienced hardship (Money, Marriage, Job loss, etc...)
   2) The value is proven to be less than the amount needed to pay off all loans, 
         encumbrances and real estate selling costs
   3) The loan is delinquent or in default

How do Seller's Benefit?

   1) The seller can avoid having a "foreclosure" on their credit report.  Recent reports 
         state that if a borrow misses 2-5 mortgage payments, their credit score will be 
         affected by an estimated 30 to 60 points.  If a borrower suffers foreclosure, it can 
         affect their score 140 to 200 points
   2) Assuming the seller is already not making mortgage payments, they can continue 
         to live in the property and not make payments during the lengthy short sale.
   3) Most sellers feel is is the "right thing to do" when in default.  They tend to feel that 
         walking away from the house is irresponsible and unfair to lender.  It's a 
         respectable option.

How do Lender's Benefit?

   1) Not having another "bad debt" on the book
   2) Not having to complete the expensive foreclosure process including all the 
         legal fees and procedural duties
   3) Not having to evict occupants and pay for their cooperation.
   4) Not having to later sell the property for no more than the proposed short sale 
         would generate, or even less when the market continues to decline.


When are short sales likely?

   1) The seller has experienced legitimate hardship which can be proven
   2) The property is in a marketable area and in marketable condition
   3) The remaining value will give the most junior lender a minimun of 20% of the 
         original loan amount (After selling costs, commissions and senior lenders are paid
         off)

Contact us today with any questions and see how we can help!
Call 312-939-5253