Short Sale- Selling for Less Than Mortgage Owed

debt settlementForeclosure rates are at their highest and many people are looking for ways to avoid foreclosure.

Due to this reason, many people turn to a home short sale. A home short sale is the process where you sell your home for less than the mortgage due, thereby avoiding foreclosure.

If you are interested in a home short sale, you must speak to your mortgage company.

Typically, mortgage companies will agree to a short sale because it diverts the cost and expense of foreclosure.

In fact, the term short sale comes from the fact that the mortgage company will agree to the sale, even though the price is short of the actually mortgage cost.

It’s also important to realize that mortgage companies usually take a long time to come to a decision regarding short sales.

It’s beneficial to already have a buyer in mind. This way you can present your proposal to the mortgage company and the company can simply make their decision with all of the facts at hand.

The mortgage company wants to make a profit. Therefore, if you are proposing a sale where the bank will lose money, chances are they will turn you down.

Short sales involve complex legal processes, so your best bet is to contact a real estate lawyer and have your situation evaluated. A real estate lawyer can help you determine if a short sale is your best option as well as help guide you through the process.

In addition to convincing the mortgage company and speaking with an attorney, you should also contact a real estate agent and let them know your situation and your hopes for a short sale.

By working with those around you, and following the advice of an experienced real estate attorney you can successfully prevent foreclosure.