A short sale is a sales transaction in which the owner of a home asks their mortgage lender to accept less than the amount they owe on the loan.

Short sales typically occur when a homeowner has little or no equity; the home is worth less than the balance on the homeowner’s loan; and the owner has experienced some type of financial hardship, either through an involuntary loss of income or increase in expenses.

In such cases, the lender may agree to reduce the loan payoff balance and accept less than what is owed as payment in full.  This enables the lender to avoid the costly foreclosure process and helps the owner minimize damage to their credit that would result from a foreclosure.

Typically, the home must listed for sale by a Realtor, and the homeowner must provide detailed financial information, along with a hardship letter explaining his or her need for a short sale to the bank.

For help with Cedar Park, Round Rock, Leander, Georgetown, or Austin Short Sales, call Sara Abbas at (512) 522-4990 today.