What is a Short Sale?
In a poor economic state, property values can come crashing down. Unfortunately, this leaves many homeowners with homes that are valued at less than what they currently owe on their mortgage. In this situation, homeowners have the option of listing their homes as a short sale. A short sale is essentially as a sale of a home for less than what is owed on the current mortgage, where the seller ends up “short” of repaying their full home loan.
In order to follow through with a short sale, the seller needs to be approved by their bank or mortgage lender. A variety of documentation is required in order for the lender to verify the seller’s inability to pay back the full home loan. In the end, the bank or lender has the authority to grant or deny a short sale.
While a short sale is the result of a financial hardship for the homeowner, it does come with its advantages when comparing with a foreclosure. Perhaps most importantly, one’s credit score is less affected by a short sale as compared to a foreclosure. This gives the homeowner more options when recovering from their financial hardship, and even potential to be approved for a new mortgage in the future.
If you’re having trouble keeping up with your mortgage, a short sale may be an option for you. Speak with one of our experienced foreclosure attorneys for more information. Contact our office today at (702) 998-1188 or info@ljlawlv.com.
For more information, and to hear our experienced foreclosure attorneys discuss the risks and benefits of a short sale, check out “What is a short sale?” on our Youtube channel.