A short sale in real estate occurs when the outstanding obligations (loans) against the property are greater than what the property can be sold for, or refinanced for. Short sales are a way for home owners to avoid foreclosure on their homes and be able to pay off their loans by paying less than what the payoff amount is, to their lenders. Negotiating a short sale with the lender is a difficult process for many reasons: it is hard to find the bank officer who has the authority to accept the discount. Once you get in touch with the correct person, the difficult task of negotiating can begin; it is then a project to convince the officer to understand the nuances of your situation so that they will accept the discounted offer.
Without an experienced person to guide you through the process, many short sales fall through. We understand what the lender requires for them to be in the best position to grasp your financial situation. The down side of the short sale is that lenders are not required to discount payoffs, and there is no guarantee the lender will let you do the short sale. In the past, a lender would not even consider a short sale if your payments are current, but that is changing. However, realize that lenders will be more agreeable to negotiate if your payments are in arrears. Plus, if you have cash assets, the lender might try to tap those accounts.