Not every short sale will release you from your monetary obligation. Therefore, we strongly encourage contacting Byrne & Associates, PLLC, when obtaining a release from your banking institution. In some situations a short sale may benefit you more than going into foreclosure or giving the bank your deed. Mortgage rates can fluctuate all too often along with the interest rates. Sometimes, although homeowners are trying very hard to meet their monthly obligations, they sometimes fall short and are left unable to pay their debts. With the negative impacts that foreclosures can bring, a good alternative to counter this is a short sale.
A short sale is a real estate transaction that involves selling your property for a price lesser than your current debt balance secured by liens against your property. Because you are unable to pay for your debts, the lien holders may agree to release their liens and accept the lower amount they get from the sale.
Short sales have certain benefits. They can make things easier for investors by getting below-market value prices, and accessing information about the properties for short sale. They promote a profitable field for realtors and can save money for the seller and creditors. Additionally, it can prevent a foreclosure giving homeowners more control and protect your credit. Many times it prevents scams and offers peace of mind to the seller.