What are my options for avoiding foreclosure? A short sale may be a viable option if there’s some difficulty in making your payments. For this process, the lender examines your loan or loans and determines if you owe more than the Fair Market Value of the home or if you have a small amount of equity that cannot cover the agent or closing costs. Golden State Escrow officers can assist in short sales, making sure that all your questions are answered and that you feel confident in the process.
What is a Short Sale?
As stated above, a short sale helps you to avoid foreclosure. It’s essentially a buyer-initiated foreclosure. A home that is being sold for less than the remaining balance on the mortgage is considered a short sale. The mortgage lender must sign off on the decision. This is called a pre-foreclosure sale. They more than likely need documentation on why a short sale make sense as they can and will lose money in the transaction.
Short sales are typically lengthy and require lots of paperwork.
For potential buyers, a short sale property may be better for a buyer. However, they can take a long time and sometimes the lenders will decide that a foreclosure is better for the bank. Golden State Escrow can assist you in these types of transactions. We have nearly 40 years of experience and our professionals keep up to date with all current laws and restrictions.