Short Sales & Foreclosure
Foreclosure is the legal right of a mortgage holder or other lien holder to gain ownership of the property and/or the right to sell the property and use the funds to pay off the mortgage if the mortgage or lien is in default.
Initially, mortgage default resulted in automatic ownership of property by the mortgagee. However, the law has evolved over the years to allow mortgagors time to pay off mortgages before their property is taken from them. This process of repossessing the mortgagor's property due to default is what results in foreclosure.
Today, there are several state laws and regulations that govern foreclosure that protect both the mortgagor and the holder of the mortgage from unfairness and fraud. In the United States, although states have their own variations, the basic guidelines of foreclosure are typically consistent.
Short Sales
Short Sales occur when homeowners are authorized by the bank, to sell for less than what is owed on the mortgage. The lender authorizes or accepts the sales price as a payoff and the seller avoids a credit-destroying foreclosure.
When selling, the seller does not get any money at closing, however, avoid the financial issues that foreclosures can cause. During negotiations with the bank, we work on our clients behalf to have their home debt forgiven for their mortgage, where in many cases are successful.
To learn more about Foreclosures and Short Sales, please read the featured articles provided by Grand Home Concepts.
