A short sale is a real estate transaction in which the net proceeds of the sale are less than the amount owed on the property. A short sale must be agreed to by all lien holders. Banks do not have to allow a short sale, but when negotiated properly, a short sale may be acceptable and preferable to the bank, to avoid the additional expense of handling the foreclosure, taxes, carrying cost and sale of a property.

According to recent statistics from real estate data company RealtyTrac, approximately 5.1% of all single family home and condominium sales in the first half of 2016 were short sales.

A short sale happens in much the same way as any other sale. A homeowner can list their house with a real estate broker, or they may contact a short sale specialist. In a typical short sale, once the homeowner receives an offer they contact their bank and seek the bank's approval for the short sale. An experienced short sale specialist may be able to make this process both faster and more successful.

This question isn't as straight-forward as you may think. You may want to seek the advice of an attorney and an accountant. In general though; Yes - a short sale, if agreed to by your bank (and any other lien holders) will satisfy your debt, and leave your credit in far better shape than a foreclosure or bankruptcy. A short sale allows the owner to stay in the home until the sale completes. While a seller generally pays realtor and closing costs, in a short sale, the bank will absorb those costs. Also, a short sale allows the homeowner the dignity of selling, rather than vacating their home and forfeiting it to the bank.

Yet another reason to consider seeking professional advice. The main reasons to proceed with a short sale is to secure a release of personal liability, yet not every seller is released. In some states, some loans carry a personal guarantee. Some hard-money loans in certain states allow for deficiencies. Also, the omission of verbiage pertaining to a deficiency in a short sale approval letter doesn't necessarily mean the seller will be released.

There can be benefits to participating in a short sale for buyers. Often times the buyer can get an excellent deal in a short sale. However, a short sale can be a far longer and more stressful process. A typical home purchase may close in one to two months, while a short sale can take three to six months or more. It pays to have an experienced real estate professional who is familiar with short sales assist you through this process.

Foreclosure is the process of a lien holder taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments.

There can be a list of consequences following a foreclosure. First and foremost are the financial implications and the impact to a borrowers credit. You may still be liable for a deficiency after the sale of a foreclosed house. There can also be significant tax implications to a foreclosure or a short sale. The IRS can view the cancelation of debt as income, triggering tax obligations that may be a surprise to many.

Yes, generally, a sale can be the most effective solution to avoiding foreclosure. If a homeowner has positive equity, a timely sale can preserve that positive equity as well as the homeowners credit. If the homeowner does not have equity, a short sale may be a viable alternative. A short sale must be approved by the lien holder to be completed.

Yes, contact your lender as soon as you fall behind on payments. They may have options to help you avoid foreclosure. Do not avoid or ignore communication from your lender. Avoid "Foreclosure Avoidance" companies that charge fees for foreclosure prevention help. Seek assistance from HUD www.hud.gov - or from an approved housing counselor.

The Home Selling Help Group is not a foreclosure counseling company, nor do we offer legal advice. We can help many homeowners avoid foreclosure however, by making a cash offer to purchase your house. We are also experienced at successfully negotiating short sales with lending banks.

There are several ways we can help you sell quickly. First off, complete our Home Seller Information Form and our team will put our expertise at your disposal. In many cases, we'll make a cash offer to purchase your house in less than three days.

Yes, there are several ways we may be able to assist, even if you own more than your house is currently worth? We may purchase your house outright, and in many cases we can help negotiate a short sale of your property with a third party, quickly.

HSHG's Clean Start Program is plan to help homebuyers move on, and avoid the financial peril of repeated mortgage delinquency, potential foreclosure or even bankruptcy. There is no commitment and no fee for participating in the Clean Start Program.

No, we purchase homes from buyers in every phase of home ownership. You do not need to be behind in your payments, and you do not need to be facing foreclosure for HSHG to help you. Because we have a large network of Buyers and Sellers, and because HSHG will renovate and rehabilitate properties, we can often add value for all parties in a house purchase and sale transaction.

HSHG is a for-profit company, with a corporate mission that seeks to assist homeowners that want to sell their house or other property quickly and efficiently. We do not offer legal advice or debt counseling. We do offer cash for your house or property, and we do offer the assistance of our experience and knowledge.