Short Sale Introduction

Welcome to my blog! I am currently blogging on our company website, www.shortsalelegalervices.com as well, but as those blogs begin to expire, I'm going to keep them alive be re-posting them here.

For those not familiar with the term (but are hearing it more and more), a short sale is when a property is sold for less than what is owed. The bank decides that taking less, is still a better option than incurring the costs of foreclosure.

Example: Bob owes $200k on his home and is thinking about selling it, but his Realtor advises him fair market value is only about $150k. Bob has a couple options: 1) Stay put and keep making payments he likely can't afford; 2) Sell it for $150k and pay $50k out of pocket; 3) Mail in the keys, let the lender foreclose and wait for them to pursue him; or 4) Attempt a short sale.

While a short sale still might see Bob have to pay something out of pocket, odds are it will be for far less than the full amount. Additionally, the hit to his credit will likely be less detrimental than a foreclosure would be.

At the moment, the short sale process is a living, breathing process. As banks and lenders slowly realize that short sales won't be going away any time soon, they are trying to adjust accordingly. Policy's change weekly and we try our best to stay on top of those changes and share them with all of you. Feel free to write me with questions, comments and feedback - I look forward to hearing from you!