What is a short sale?

We are frequently asked, “What is a short sale?” A short sale is a sale of real estate where the seller’s mortgage exceeds the purchase price of the property. In those situations, there are three parties involved in the sale transaction instead of the usual two; the buyer and the seller. The mortgage company or the bank becomes a third party to the transaction. That is because the bank or the mortgage company has to approve the sale of the property and thereby agree to accept less than the amount due on its mortgage. Unfortunately, experience teaches us that the time period for handling a short sale transaction takes much longer than the normal real estate transaction. This is because banks and mortgage companies take a long time to make the decision whether or not they’ll approve the sale.

It is important to know that short sales are never guaranteed. Some of the factors that may have a negative impact on the short sale may include multiple loans, outstanding dues, or failure to pay liens. An experienced attorney can help walk you through the process of a short sale to make sure everything runs smoothly.

If you require experienced legal assistance for any of your real estate, bankruptcy or family law matters, contact the Mark Scollar Law Office today to schedule a consultation.