A Short Sale Could Be the Key to Protecting Your Credit

Even though the economy has begun to trend upward, the results of the recession still can be felt.  If you are one the millions of Americans who have been impacted financially through layoffs, investment loss, or an interest-rate increase on your mortgage, you may find yourself in danger of losing the home you have worked so hard to earn, or you may also find yourself in need of selling a home that is worth less than you currently owe on it.  For these and many other reasons, foreclosure may seem to be your only option.  But it doesn’t have to be.  A short sale is possible in many cases and can help protect your credit from the damaging effects of foreclosure and help you to avoid having to file for bankruptcy.

A short sale of real estate refers to the practice of homeowners sell their property for an amount lower than what is due on the mortgage.  This is an option typically exercised by homeowners in financial peril.  A third party purchases the property – not the bank – with all monies from the sale going to the lender.  After the sale, the bank holding the mortgage has the choice of either forgiving the difference between the sale price and what is actually owed, or seeking a judgment of deficiency against the original borrower (which requires the homeowner to pay the balance of the loan following a short sale).  However, in some states, the difference must be forgiven by law.  Find out which laws apply in your area.

It’s important to work with an experience Short Sale Real Estate Broker who is CERTIFIED in handling Short Sales. NC Mountain Realty Group has 2 certified Short Sale Brokers, a Short Sale Attorney working as a partner in handling our Short Sale transactions and a Former Bank Asset Manager who works with our clients.   Contact Lisa Grefe at (828) 337-6300 or email me for help with any questions that you have or for more information.