If a home is worth less than what is owed or a borrower falls behind on their payments, sometimes the best financial decision is to negotiate a sale with the lender for less than the debt obligation (aka selling “short”). The sale of the home stops the foreclosure process and can help the borrower’s credit. The seller in a short sale is still the borrower, although the bank will need to agree to the sale if the purchase price is less than what is owed. One of the most important parts of negotiating a sale with the bank is making sure the borrower does not pay out-of-pocket for professional fees.
If a short sale does not succeed, the bank can move forward with repossession, sometimes by offering the home at public auction.
Selling a home while under financial stress is an exhausting process, and having an experienced professional help you through it is imperative. The Madison Group has a specialized short sale team that can help you hit the ground running on an already time-sensitive process.
We do the right thing, and we can start by scheduling a brief call or in-person visit to offer some free advice.