A Short Sale happens when a home is sold for less than the balance due on outstanding liens on the property. There may be one or more lein holders on the property and each one should be notified regarding the possibility of a Short Sale.
Even if the lein holder agrees to allow the short sale it does not always mean that they are willing to forgive the debt. They are just agreeing to allow the collateral on their loan to be sold but the loan still stands unless the homeowner can negotiate the shortfall.
If there are extenuating circumstances that make repayment of the entire amount difficult to impossible there may be a way to get the lein holder to forgive the debt. This requires the homeowner to work in good faith with the bank.
Your REALTOR should have experience in "Short Sales" and be capable of negotiating with the lein holder to allow the sale of the property BUT it is up to the home owner to negotiate the shortfall as this falls out of the realm of the expertise of a REALTOR.
If you would like more information regarding the Short Sale process please contact me and I am happy to see if we may assist you.
Judy Tuscano, REALTOR
Team Tuscano
Prudential Verani Realty
603-498-2263 cell phone
603-693-0919 office direct
jude1220@yahoo.com
To read more about short sales you can check out some of my other posts:
Short Sales - Better for all involved?
A Short Sale could help you make a tough situation a little more palitable.
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Great post. I thought it was the sellers responsibility to approach the mortgage side not the realtor.