Mentor Loan Modifications

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Short Sales

A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property. The major difference between a short sale and a conventional sale is that the bank has to approve the terms of the purchase contract between the homeowner and the buyer. In a short sale, the bank agrees to discount the loan balance, due to an economic or financial hardship on the part of the homeowner. This negotiation is all done through communication with a bank's loss mitigation department. The homeowner sells the mortgaged property for less than the outstanding balance of the loan, and all of the sale proceeds are turned over to the bank.

A short sale typically is executed to prevent a home foreclosure. Banks are allowing short sales more frequently because they typically result in a smaller financial loss than foreclosing on the property. This also helps a homeowner avoid a foreclosure on their credit history. A short sale can be faster and less expensive than a foreclosure.

Although this may not be your first choice, it is much better than having a foreclosure on your credit report.   We are experienced in negotiating short sales. Contact us today for a free consultation.