If you are no longer able to afford your home and are facing foreclosure, you might be eligible for what is called a “Short Sale.”
What is a “Short Sale”?
A “Short Sale” (also known as a pre-foreclosure sale) is when you sell the home for less than the balance that remains on the mortgage. Even if you don’t think your home is able to be sold you might still qualify for this type of sale. Once your mortgage company agrees to the Short Sale, you’re able to sell the home and then pay off your mortgage (or at least a portion of the mortgage) will the proceeds.
Eligibility
You might be eligible to a Short Sale if :
- You’re not eligible for a refinance or modification of your mortgage
- You are dealing with a long-term hardship
- You have fallen behind on your mortgage payments
- You’re “upside-down” on your home, meaning you owe more than it is worth
- You have tried selling, but have been unable to sell your home for a price that covers what is owed on the mortgage
- You are no longer able to afford the home and are ready and need to leave it
Benefits
A short sale allows you multiple benefits, including:
- The ability to eliminate or reduce your mortgage debt
- Avoid foreclosure
Avoiding Foreclosure
The idea of losing your home to foreclosure is devastating. A lawyer can help you avoid foreclosure through looking at various viable options including a home loan modification or even bankruptcy in order to get you back on solid financial footing.
Source: Know Your Options, Short Sale: Fannie Mae, 2015