The Purpose of a Short Sale

What is the purpose of a Short Sale?
To help the borrower that has a property in default avoid foreclosure and prevent the home from going to REO.  To help the buyer purchase the property at a discounted price before it enters the REO stage.

What is a Short Sale?
A short sale is a negotiated settlement. This is when the lender or other lien-holders agree to accept less than the amount owed as a payoff on a property.

There are two types of release the lender may offer if the short sale is approved.

 Full satisfaction - The seller is totally released from the debt owed.

 Partial release of lien - The lender will release the lien for a discounted price to allow the property to be sold, but the borrower may be responsible for the remaining balance.

A Short Sale can be a lengthy process.
The lender accepts a short payoff to save on legal fees and to reduce the turnover ratio on foreclosures.

The investor or buyer saves the borrower’s credit from foreclosure and also gives the borrower another chance to become a homeowner.

Please call me at (732) 232-6316 if you have any questions.