A SHORT SALE is any sale of real estate where the net proceeds fall short of the balance of the mortgage; and where the mortgage company agrees to accept less than the full payoff amount. Both the homeowner and the mortgage company agree to the sale.
The Mortgage Company can avoid a costly foreclosure which usually involves hefty legal fees and marketing time lost. According to the Joint Economic Committee of Congress the average foreclosure costs $77,935 while preventing a foreclosure costs a mere $3,300. Also, a foreclosure can be ruinous to a homeowner’s credit for years to come. While a short sale is generally much less damaging to credit over the long term
Homeowners who are successful in completing a short sale are many times forgiven large sums of money; oftentimes without a deficiency judgment or requirement to repay! And, many consider the emotional closure afforded by a short sale – something not possible in a foreclosure – the greatest benefit of all.
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The following disclosure is made pursuant to the Federal Trade Commission’s MARS Rule (16 C.F.R. §322 et seq.).
IMPORTANT NOTICE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us a commission for our services (please call the office 845-564-2800 x116 to speak to an agent or managing broker for commission information details). River Realty Services, Inc. is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
IMPORTANT NOTICE: River Realty Services, Inc. is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
Page Disclaimer- All information is provided for informational purposes only and is not legal advice. Consult an attorney or financial expert for legal advice. This is general information and is not intended to provide advice on any specific question or transaction. Parties to any real estate transaction should seek competent legal and/or tax counsel to determine the legal, credit and tax consequences of buying or selling a home.Listing your home for sale and attempting to do a Short Sale is a possible solution to avoiding foreclosure, but not a guarantee that your lender won't foreclose or pursue other means of collecting the unpaid debt between what you owe and what the home may sell for.