Steps of a Short Sale
To avoid going through the cost of foreclosure, a lender will allow a short sale by letting a buyer purchase the home for less than the current mortgage balance while the home is in the pre-foreclosure stage. Here are some of the steps of a short sale:
- The homeowner will sign a listing agreement with a real estate agent subject to selling as a short sale with third-party (lender) approval
- A buyer makes an offer on the property for less than the balance of the mortgage
- The homeowner, accepts the buyer’s purchase offer
- The seller’s lender accepts the buyer’s purchase offer
- The transaction is complete when the buyer or buyer's lender delivers the funds to the Escrow company, the lender releases the lien, and the seller transfers the deed to the new owners.
