It's important to have a plan for your present and future financial well being, owning a home can be a big part of that equation. Unfortunately, life does not always go as planned, circumstances can change and sometimes difficult times require difficult decisions. If you've found yourself in the position of considering a short sale, know that you are not alone and you are not being judged based on the ups and downs of your financial health. Experienced and compassionate help is available if you feel this may be the appropriate solution for your situation.

What is a Short Sale?
A short sale is a type of home sale in which the proceeds of the sale are less than the amount owed on the mortgage. In a short sale, the lender agrees to accept less than the full amount owed on the mortgage, which can help avoid the foreclosure process. 

What is Foreclosure?
A foreclosure is a legal process in which a lender takes possession of a home after the borrower has failed to make mortgage payments. The lender then sells the home to recoup the amount owed on the mortgage. Foreclosure can have a significant negative impact on the borrower's credit score, making it difficult to qualify for future loans. 

Short Sale vs. Foreclosure:
The main difference between a short sale and a foreclosure is that a short sale is a voluntary process, while a foreclosure is involuntary. In a short sale, the homeowner works with the lender to come up with a plan to sell the home for less than the amount owed. In a foreclosure, the lender takes possession of the home without the homeowner's consent.

There are a few advantages to a short sale over a foreclosure. First, a short sale can help a homeowner avoid the negative impact of foreclosure on their credit score. Second, a short sale can allow a homeowner to walk away from the home without having to pay the difference between the sale price and the amount owed on the mortgage.

Preparing for a Short Sale:
Some items to begin assembling if you feel a short sale may be the right decision for you:

This is just the very basics, different banks may have different and/or additional document requirements. We can address that once we establish communication with your lender and obtain their instructions.

Another Possible Option - Deed-In-Lieu of Foreclosure:
A deed in lieu of foreclosure is a legal process in which a homeowner voluntarily transfers the title of their home to their mortgage lender in order to avoid foreclosure. This can be a good option for homeowners who are facing financial hardship and can no longer afford their mortgage payments. When a homeowner signs a deed in lieu of foreclosure, they are essentially giving up their home to the lender. In exchange, the lender agrees to release the homeowner from any further liability for the mortgage debt.

Before you make the decision on which option is the best for you, always consult with a tax, legal or financial professional to discuss the potential impacts these or any other options may have on your credit and future ability to qualify for a mortgage.

How to Get Started:
It's starts with a conversation. Simply contact me and we can set up a time to chat to discuss your situation and determine if a short sale might be an option for you. Our conversation is kept strictly confidential and your information is never shared without your permission.

How Much Will it Cost?
Getting help comes at no cost to you. If your short sale is approved, the lender will typically cover the costs associated with the sale.

Mortgage Debt Cancellation:
A law enacted in 2007 provided temporary relief to troubled borrowers when some portion of mortgage debt is forgiven and the mortgage covers the borrower's principal residence. That relief has expired and been extended several times. The latest extension, enacted in December 2020 via the Consolidated Appropriations Act, provides relief for debt forgiven from January 1, 2021 through December 31, 2025, with a maximum of $750,000.

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