SettlementBoard.com News, Articles and Information for Legal Junkies

Short Sale Program

The Short sale is a foreclosure alternative which provides an outstanding opportunity for the lender, the borrower/seller, and a prospective purchaser to mitigate damages.  Unfortunately, in today’s troubled real estate marketplace, the short sale process is one fraught with a substantial amount of misunderstanding and delay, which may result in frustration that can be avoided.  Utilizing basic fundamental information and a well-thought-out approach, a short sale can be achieved for the benefit of the borrower, lender, and prospective purchaser, as well as with a reduction in the amount of frustration and effort on behalf of the real estate professionals (real estate brokers, real estate attorneys and/or title agents) involved in such transaction.

1. DEFINITION OF A SHORT SALE

A short sale involving real estate is defined as a transaction in which the purchase price of the property is less than the amount necessary to pay off the mortgage and related closing expenses which results in the lender considering either;