A short sale occurs when a property is sold for less than is owed and the lender agrees to accept the amount the property is being sold for (lees some expenses) even though the outstanding balance is not fully paid. Short sales occur when a seller owes more on their house than they can sell it for (an 'upside down' mortgage).

To qualify for a short sale homeowners must demonstrate a number of factors including, in some form or another, extreme financial hardship/insolvency (some banks will not even discuss a short sale if you are current in your mortgage), fair value in the short sale sales price (you probably will need to have a buyer in place to make the formal application for a short sale) and reasonableness in the closing costs you seek to have paid from the sale before the remainder goes to the bank.

The advantage of a short sale is that the lender, in most cases, accepts the payment they agree to in full satisfaction of all obligations that the homeowner owes to the bank and there is no deficiency judgment as frequently results from a foreclosure.  The homeowner gets to schedule their departure from the house and doesn't have to fear removal by the local Sheriff or Marshall.

The new Debt Relief Act of 2007 now allows short sales without tax consequences on the amount of the debt which is forgiven by the lender. This change allows homeowners who find themselves with no viable option but a short sale to walk away without facing tax consequences

We will act as your advocate, negotiating with your mortgage lender. We will make certain that all forms are properly completed and that your lender properly discharges any excess amounts otherwise due.