Not that long ago, the national news was turning out stories about the number of American homeowners who were falling on hard times and experiencing foreclosure of their homes. Foreclosure was and still is a major real estate problem in Kentucky and can deprive a family of their residence if they are unable to pay their mortgage. This post will discuss a topic related to foreclosure that some individuals choose to pursue rather than seeing their properties claimed by their lenders: a short sale.
A short sale is also known as a pre-foreclosure sale. When a homeowner receives notice that their property is being foreclosed upon, they may attempt to sell it so that they are able to repay their lender. If the sale yields sufficient funds to pay off the mortgage, then they are free and clear of their financial obligation and avoid foreclosure.
If, however, the seller is unable to find a buyer willing to pay a high enough price to satisfy their outstanding mortgage, the lender must approve the sale and, ultimately, allow the proceeds of the sale to be enough to relieve the mortgage holder of their debt. This is a short sale and not all sellers facing foreclosure are able to work with their lenders and buyers to make these real estate transactions happen.
Foreclosure is a difficult legal process that residential real estate owners can face when they are unable to keep up with their payments. Short sales are just one option for avoiding foreclosure; attorneys who specialize in real estate law can work with homeowners to investigate other ways that they may be able to get out from under their residential real estate burdens.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Sheehan Barnett Dean Pennington Little & Dexter, PSC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.