A short sale is a real estate transaction in which a property is sold for less than the outstanding mortgage balance, with the lender's approval. It is typically pursued when a homeowner is facing financial hardship and is unable to continue making mortgage payments. The lender agrees to accept a lower payoff to avoid the costs and time associated with a foreclosure.

How does a short sale work?

1. Financial Hardship: The homeowner experiences financial difficulties, such as job loss, medical issues, or other circumstances that make it challenging to meet mortgage obligations.
2. Listing the Property: The homeowner lists the property for sale, indicating to potential buyers and the lender that it will be a short sale.
3. Buyer's Offer: A buyer makes an offer on the property, which is subject to the lender's approval.
4. Lender Approval: The homeowner submits the buyer's offer to the lender, along with financial documentation supporting the need for a short sale. The lender reviews the proposal and decides whether to approve the sale.
5. Closing the Sale: If the lender approves the short sale, the transaction proceeds to closing, and the property is transferred to the new owner.

Can a short sale stop a foreclosure?

A short sale can be an alternative to foreclosure, but it doesn't guarantee that the foreclosure process will be halted. The lender has the final say in approving or rejecting the short sale. If the lender approves the short sale, it may be considered a resolution to the mortgage debt, and foreclosure proceedings may be stopped.

However, it's crucial to communicate with the lender early in the process and seek their approval for the short sale.

At The Law Center, we are a team of specialists that are passionate and up to date about the foreclosure process from start to finish and helping homeowners at the highest level. Our staff and attorneys approach each client and each property as a new challenge, one that requires thorough analysis, zealous representation, and thoughtful strategy. It’s your home, let The Law Center help you defend it.

Call us now and speak with a foreclosure expert on how you can make the foreclosure process work for you -- not against you. (312) 600-8815

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