How Do I Do A Short Sale?
A short sale is simply where you sell your home for less than you owe on your mortgage. The bank has to approve the short sale, and the process requires a buyer for the property.
The hidden danger in a short sale is the amount you still owe the bank. This is called the deficiency, and the bank has the right to come after you personally for that amount. This is why we typically insist upon waivers of deficiency as part of a short sale to make sure the bank can never come after you for anything. As part of the short sale process, the homeowner is required to make a financial disclosure to the lender, and a critical part of the process is reviewing my client’s financial situation before any disclosures are made. The waiver of deficiency is the document that protects you against the bank coming after you for money.
There may also be government programs aimed at helping homeowners through the short sale process. There are cash for keys programs available for homeowners, where the bank gives you extra cash to help pay for your moving expenses. It is important to explore every available incentive to help my clients.
A short sale can be a great way to save your credit, and avoid the foreclosure completely.
Get the information you need to see if a short sale is right for you. Contact us now at 800-399-9781 or click below to set up a free consultation with Mr. Lyons.