What is a Short Sale?

Short sales are when a lender accepts less than the amount owed as full payment of the mortgage balance because there is not enough equity to sell the home and pay all the costs. Most lenders will negotiate a short sale; however, they prefer to work with a Realtor and generally require the home to be listed for sale through the local Multiple Listing Service.

Short Sale Benefits

According to financial experts, the effect of a short sale on a seller’s credit report can be much less damaging than that of a foreclosure.

  • Avoid the stigma of foreclosure
  • Potentially faster solution
  • Reduce deficiency judgement risk
Foreclosure signifies the legal process by which the lender repossesses a property due to missed mortgage payments. It's a complex, often daunting procedure with significant consequences: credit score damage, loss of ownership, deficiency judgment risk.

If you are in a situation where you can no longer make your payments, a short sale may allow you to stay in your home longer and recover quicker than walking away and accepting foreclosure.

Short Sale Challenges

Short sales require dedication on the part of the Homeowner as well as the Realtor as there are required forms and steps to be followed in the process.

  • Bank approval required and not guaranteed
  • Time commitment
  • Tax implications

Short Sale Help!

Facing a short sale or foreclosure can be overwhelming. Thomas Ryan Real Estate Management can provide professional guidance during this crucial process and help you navigate this challenging chapter and emerge with a brighter future.

  • Navigate the complexities of the process: From paperwork to negotiations, experienced professionals can ensure you're protected and informed.
  • Explore alternative options: Depending on your circumstances, loan modifications, forbearance programs, or even bankruptcy may be viable alternatives.
  • Minimize the emotional toll: The emotional stress of such situations is immense. Having trusted advisors by your side can provide much-needed support.

*Always see proper legal and tax help when facing a foreclosure or short sale.