Sellers who stop making mortgage payments and those headed into default who cannot refinance or work out financing alternatives with their lender have three options for sale: sell the property before foreclosure is final, give a deed-in-lieu of foreclosure to the bank or let the bank take the property in foreclosure. Buyers and investors often try to negotiate with the bank on short sales before the home foreclosure is complete, especially if the home is worth less than the outstanding mortgage balance.
There is much confusion about just what a "short sale" is. I consider myself an expert on short sales and am happy to answer all of your questions and explain the fundamentals behind a short sale, why lenders accept short sale purchase offers, tax consequences to short sale sellers and benefits to sellers and buyers to negotiate short sales.
- Is a Short Sale Right for me?
- Short Sale Tax Consequences
- How Short Sales Affect Credit