What is a Short Sale?

Liberty Credit Law, PC

A short sale occurs when a home owner sells his or her home for less than the principal balance that is owed to his or her lender.  The lender then agrees to accept the amount, even though it is less than what is owed, and the home owner is able to avoid having a foreclosure on his or her financial record. Short sales are ideal for people who have been trying to sell their homes for a length of time with little success.  Short sales are also ideal for people who want to avoid foreclosure without having to file for bankruptcy, which would appear on their credit reports for many years.

In the event of a short sale, even though the proceeds from the real estate fall short of what the borrower owes, the lender will accept the amount because initiating the foreclosure process can be costly and time consuming.  During a short sale, the borrower and the lender will have to work closely to negotiate terms so that both parties are satisfied with the outcome of the sale.  Not every lender will agree to a short sale, especially if the lender feels that he/she can make more money by foreclosing the property.  Additionally, not all borrowers or properties will qualify for a short sale, which means that people must understand eligibility requirements before pursuing this option.  The best way people can get a solid understanding of short sales and individual qualifications is by working with an experienced short sale attorney.

Short Sale Lawyers
Liberty Credit Law, PC has helped countless clients throughout the United States with short sales.  We understand that when it comes to foreclosures and short sales, all action must be quick and effective.  We also know that the key to a successful short sale is making sure that both the lender and our client are in agreement and willing to work together.

If you have questions about preventing foreclosure through a short sale, contact the committed staff at Liberty Credit Law, PC today!   

Liberty Credit Law, PC is a law firm based in Horsham, PA with associate attorneys in multiple states where it accepts clients.