Seller Resources - Articles

Selling Your Home - Selling at a Loss

Can a home seller sell a home for less than its mortgage?
Yes, it's called a Short Sale !
Although not everyone will qualify.

In some case you can sell your home for less than what you still owe on the mortgage. This may be complicated and the outcome will depend on the mortgage lender. 

This situation, known as a "short sale" is a negotiation between you and your mortgage lender to sell your home short of what is owed to the lender. 

The short sale process may be difficult and most if not all lenders will not work with a homeowner directly to facilitate a short transaction. You will need either an Attorney or a Realtor who specializes in this type of transaction.

Generally, a short sale leaves less of a mark on your long term financial credit than a property foreclosure. And it would be wise to consult with one of our experienced short sale specialists for further information and  to engage into a home sale Brokerage Agreement as soon as you fall into a potential mortgage default situation.

So, when does a foreclosure process begin?

Lenders will initiate foreclosure proceedings when the borrowers become delinquent in their mortgage obligations. The lender will then notify the borrower in writing that he or she is in default. The lender can request a trustee's sale or a judicial foreclosure, in which the property is sold at public auction after following legal procedure for default.

RE/MAX New Beginnings
RE/MAX New Beginnings
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