What is a Short Sale in real estate and who would want one?  Certainly not the bank.  The bank who loaned the money to buy the house wants all that money, plus the interest agreed upon.  They want all of it, cutting no part of that amount short.  Regardless of what that house may be worth now, the agreement with the lender was to pay the whole amount.  So how does a homeowner get a short sale out of that?

Not easily, and not without a sacrifice of credit, but it can be done.

What if you are coming up short on making your mortgage payments?  The Short Sale of your home may be the best resolution, depending on your circumstances.

A Short Sale is when the lender agrees to accept less than the mortgage amount owed.

Again, the bank wants their money, but they do not want your house.  They do not want to open a branch office at your address, keep cold cash in your refrigerator, convert your garage to a drive through and give out lollipops.  Banks are in the business of money, not real estate.  While your home is held as collateral on the loan, the bank does not really want it.

Often a Short Sale is the best thing for the universe.  

A short sale will bring the most money for the property at the time…as opposed to a foreclosure or REO (Real Estate Owned).  A short sale is best for the bank, the homeowner, and for the neighborhood.  It gives the bank at least some money, it gets the homeowner out of an upside down situation, and it helps to maintain property value in the neighborhood by putting another homeowner in the house instead of leaving it vacant.

A Short Sale will NOT stop a foreclosure.  

Just because you are in negotiations with your lender for a short sale, and even if things are going well, that does not mean you are “safe” from foreclosure.  The legal department and the financial department are two separate entities.  They do not necessarily communicate or coordinate.  The lender may be working with you for a short sale, but their legal department is marching forward at the same time.

…Which is why you may need a Foreclosure Defense.

A Foreclosure Defense is not a denial of debt; instead, it asks your lender or loan servicer to prove their case—to verify the facts of their authority to foreclose as well as the amount owed—and in doing so, gives you the opportunity to purse the Short Sale.  The idea of Foreclosure Defense is to reach an outcome of best benefit to you before the lender can complete their legal case against you.