What is a Short Sale? You may have heard this term but weren’t sure exactly what it means. So what exactly is a short sale? It’s the process by which a homeowner can sell their house for less money than he or she actually owes on the mortgage(s).

The process goes like this: The Borrower provides proper documentation to his or her mortgage lender(s) to show a hardship to pay the mortgage and requests the lender take a “short” payoff on the outstanding mortgage balance. The mortgage lender (or bank) takes a loss (or write-off) on the mortgage because the value of the home has fallen below the mortgage balance and the homeowner has suffered a legitimate financial hardship that has caused the borrower to fall delinquent and is unable to continue to pay the mortgage on time.

Once the bank approves the “short” payoff on the mortgage, the home can be sold for a price near the Market value without the Seller having to come up with cash to cover the shortfall. The mortgage is satisfied and the foreclosure process stops. It is recommended that a homeowner considering a short sale consult with a CPA, attorney, and of course, a qualified real estate agent experienced in short sales.

Luckily, here in the Greater Baton Rouge Area we have not experienced many of these types of properties on the market, but we have seen enough that two team members have become Certified Distressed Properties Experts.  If you wonder if you might qualify for this type of service to get out from under your mortgage, give us a call and let us see what we can do for you.