A homeowner is “short” when they owe an amount on the property that, when combined with closing costs and commissions, is higher than the current market value. A short sale occurs when a negotiation is entered with the homeowner’s mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is sold “short”.
What is a Foreclosure and How Does it Work?
A foreclosure occurs when there is a legal proceeding by the lien holder in which they take back the property in order to recover the amount that is owed by the homeowner.
Homeowners regularly proceed without guidance of any kind through the often financially and emotionally devastating prospect of foreclosure. Speaking with a well-informed, licensed real estate professional is the best course of action for a homeowner in distress. Through comprehensive training and experience, CDPEs have the tools to help homeowners find the best solutions for their unique situations and to avoid foreclosure through the efficient execution of a short sale.