To many people, the term “short sale” is relatively new and can be confusing. In the simplest terms, short sales are a type of home sale in which:
- The homeowner owes more money to the lender(s) than the value of the home;
- The homeowner works with the lender(s) to sell the home; and
- The homeowner is able to minimize their financial liability or deficiency due to the sale (a deficiency is the difference between the price the home sold for and the amount the homeowner owed on the mortgage note.)
Short sales offer homeowners numerous advantages over foreclosures. For instance, short sales usually result in less damage to credit ratings. Short sales can also prevent certain tax and judgment issues. Most importantly, unlike foreclosures, homeowners have a large degree of control over the sale and deficiency process.
If you need legal assistance regarding a short sale, contact the law firm of Shadrix, Lane & Parmer, P.C. at 770-830-0809.