Just what is a “short sale”? A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan. Generally speaking, in order for a short sale to be even considered by the lender, a homeowner must have experienced a financial hardship and the homes mortgage must exceed its value due to the downturn in the market.
Angie Clark will work hand in hand with your lender or servicer in order to sell your home, and if your home sells for less than the amount owed on the mortgage, to negotiate with your lender to discharge any remaining debt.
Short Sale Advantages
The following are some advantages to a “short sale”:
1. Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure", as is the case with a foreclosure.
2. Having a foreclosure on your credit report could reduce your credit score over 250 points!
3. With a short sale, a homeowner can buy another property in just 2 years, as opposed to a foreclosure, which restricts the homeowner from buying another home for up to 4 years.