Short sale is the term given to a sale of a property for less than what you owe to your various lenders (loans, liens, etc.). A short sale is a tool sometimes used to avoid foreclosure. If a modification is not possible, or you are interested in relinquishing the property, a short sale is a preferable solution to foreclosure.
Since 2008 property values have decreased tremendously. In some cases, homes with mortgages of $230,000 may today only have a market value of $140,000. In these cases, the strategic benefit of short sale is fiscally obvious. With the help of your attorney, you can list the property for sale at the market value and apply for a short sale with the lender.
A short sale is not something a homeowner can simply undertake on their own. Your lender’s primary goal is to recoup their original investment with interest. Only foreclosure is less desirable to your financial institution than short sale.
An experienced North Carolina foreclosure defense attorney can help you open discussion for and negotiate the terms of a short sale with your bank.
Short sales are not the only answer for every distressed property owner looking to relinquish the property outside of foreclosure. If the property is unsellable for any reason, a borrower may qualify for a Deed in Lieu of foreclosure. Essentially, a Deed in Lieu is the process of giving the property back to the bank in exchange for release from obligations under the loan. In some instances, borrowers may qualify for “Cash-for-Keys” programs where the lender will give them a stipend to move out of the property. Laura is an experienced attorney in negotiating terms for short sales and deeds in lieu and can help you navigate the process with the lender.