A short sale occurs when a secured lender agrees to accept less than the full amount it is owed in exchange for releasing its interest in the property. In other words, the seller’s mortgage lender agrees to a discounted payoff at the sale.
We have closed many short sales. Just make sure to let us know that your closing involves a short sale, and when you send over a contract, make sure to send us the approval letter from the short-selling lender. If you don’t have an approval letter, just let us know, and we’ll work with you as you present the short sale offer to the lender.
When evaluating short sale offers, most lenders require a draft settlement statement. We will work with you through the short sale approval process and prepare preliminary settlement statements as may be required.
Please understand that in a short sale transaction, the seller cannot receive any proceeds from the sale. Furthermore, the short selling lender may insist upon reduced real estate agent commissions and caps to any seller-paid closing costs.