What is a Short Sale?

A short sale occurs when a lien holder agrees to discount the home to less than the loan amount in order to sell without having to pay court costs, upkeep and other fees included with the foreclosure process. Short sales are done to prevent foreclosures.

Example: If the unpaid balance of a loan is, say, $200,000 and a property sells for $150,000, under a short sale the lender might accept $150,000 as payment in full.

Often a bank will agree to a short sale if they believe that it will result in a smaller financial loss than going through the lengthy and expensive foreclosure process. For the homeowner, the advantages include the opportunity to salvage some of their credit standing by avoiding a foreclosure on their credit history and, at least, partial control of the monetary deficiency.  

The short sale process can be a long and agonizing one if the person handling the process does not know how to do it. Finding a short sale specialist to negotiate for you is the best way to get through the process easily.

If you are in the Phoenix metro area and you need short sale help getting out from under foreclosure call me direct Rodney Barnes, Your Short Sale Realtor at 623-217-7548. I can help you through this rough time.