What Is a Short Sale?Return to Videos
A short sale is how the bank wants you to resolve these foreclosure cases. If you’re upside down on your house, if you owe more than it’s worth, you can’t just sell it because you can’t sell it for what you owe on the property. So, when you go and ask the bank for a modification they put you through a whole ring-em-a-role and if you learn anything about it you know that most of it was just delay games and tactics for the banks to make more money while they never chose to help you.
Now the reality is that if you do a short sale, you’re selling the property for a price the bank is willing to accept. And if you do that you want to make sure you get a deficiency waiver. The bank agrees not to come after you for the balance of that you owe. If you are in a situation where you’re doing a short sell and you do not get that waiver, they’re going to come after you.
And I have plenty of clients who I’ve had to help out of that mess. It’s not a good idea. Don’t do your short sale unless you get the deficiency waiver.