A SHORT SALE takes place when the house is sold for less than, or "short" of the payoff amount owed on the loan. 

Persons facing a foreclosure should consider a short sale.  Agents with special knowledge and experience can help you with this but this is no job for an average agent.  Our team members have this experience!

Generally, a bank or mortgage lender would prefer not to own any homes.  They want to lend on them, not own them.  Banks have an accounting category called REO or Real Estate Owned, and this may be the only place in all the financial world where owning real estate is considered a bad investment.  This is because of tax laws and accounting issues.  Banks make more money lending money for homes than by owning the homes. 

One the bank forecloses on a house, they want only one thing... To get the house sold quickly, even if slightly below market value.  Unsold homes consume cash in the form of utilities, maintenance and taxes.  

Banks generally forgive the difference between the amount owed and the sale price unless the seller has enough cash or assets to pay the difference. 

The amount forgiven may be declared by the bank to the IRS as a taxable income to the seller since a forgiven debt is the same as free income.  This depends on bank policy and can be negotiated in the short sale process.

There is no reason for you to have a foreclosure on your record.  Let one of our team members help!