As short sale specialists in the Lexington and Columbia areas we will walk you through the process of preventing a foreclosure on your credit.
A short sale, also known as negotiated settlement or short pay, occurs when a lender agrees to accept less than the amount owed as a payoff on a loan. If the property is worth less than the amount owed on the loan, then even if the lender forecloses and takes back the property, they know they are going to take a loss. We can often convince them that the lender will do better if they take less than what is owed now rather than taking the property back by foreclosure and trying to sell it later.
The short sale negotiation process is a lengthy one. As short sale specialists we work diligently to speed the process along. Many lenders have several layers of bureaucracy, insures, and investors that we will have to maneuver through in order to get a short sale approved. Homeowners help the process along by having the required documentation available to send to the lender. We will give you sample copies to fill out.
Many lenders are now compensating distressed homeowners to cover relocation expenses. As short sale specialists we will keep you abreast of the time line for staying in your home while we negotiate the short sale. Just starting a short sale will not automatically stop a foreclosure. However, many times we can convince a lender to stop the foreclosure to let us attempt to negotiate the process. We never make promises to you that a short sale will work. However, we are skillful negotiators at presenting alternatives to the lender that they often accept rather than foreclose.
A lender may offer to release its security interest against the property in exchange for less than the total amount of the note. A release will allow the property to be sold without paying off the obligations of the note. However the note is not satisfied. A successful short sale will allow the property to be sold and thus avoid a foreclosure. The remaining debt on the property, also called a deficiency, still exists. You are still liable for the note meaning you still owe the money. As short sale specialists we recommend you pursue a complete satisfaction. A lender may agree to accept less than what is owed as complete and total satisfaction of the note and release its lien against the property. Your note and obligation to the lender are satisfied for less than you owe. When the property is sold, the debt is paid off completely. You may still have some tax consequences that you should discuss with your tax advisor due to the fact that the lender is making money you owe disappear.
We are professional short sale specialists with Fairfax Realty and have helped several homeowners in keeping their home from going into foreclosure. You never pay us any money to negotiate a short sale. Our commission is paid by the lender at the closing table. Call today for a private consultation.