A short sale is a real estate sale in which the home’s sale price is less than the amount still owed on the property’s loan. Homeowners alone cannot decide to do a short sale, as this type of transaction requires the lender’s approval. If approved, the lender agrees to accept any available equity while the seller receives no money from the proceeds of the sale. At the very least, a short sale releases the lien on the property so it can be sold, although many lenders also release the seller from owing any remaining balance after the sale.
There are many reasons a homeowner may choose to do a short sale. This type of transaction may do less damage to the seller’s credit score than a foreclosure, and it can be less expensive. It can also be easier to obtain a new mortgage after a short sale as opposed to a foreclosure. In some cases, it is possible to get a new loan immediately after a short sale instead of waiting up to four years or more because of the credit repercussions.
At New Era Escrow, we understand that no one buys a home believing that they will one day find themselves doing a short sale. Our escrow officers have years of experience overseeing the often complex short sale escrow process. We offer a consumer-based approach to help you navigate the confusing waters of short sales and ensure there are no unexpected hurdles that delay closing. Our escrow officers are experts at short sale transactions with an in-depth understanding of the unique requirements involved in these transactions. We understand that short sales are very time-consuming and time-sensitive. We offer a proactive strategy to avoid delays and ensure homeowners and lenders are confident that the transaction will close on time.