Although the term “short sale” is commonly used, not everyone knows what it actually means. If a homeowner finds themselves not being able to pay the mortgage, the homeowners may be encouraged to enter into an agreement for a short sale. A short sale is when the homeowners are behind on the mortgage, so instead of a foreclosure, the bank and homeowners agree to sell the home for a price that could be less than what the homeowners owe the bank. Depending on the laws of the state where the short sale occurs, if the house is sold for less than what the homeowners owe the bank, the bank may be able to sue the homeowners for the difference. Alternatively, the homeowner may be able to ask that as a condition of the short sale, the bank consider the sale payment in full on the mortgage.
Short sales may be helpful for certain homeowners, but for homeowners who are behind on the mortgage payments and would like to stay in the home, a mortgage modification may be a useful tool. Mortgage modifications can work in a variety of ways, but the end result is that the mortgage payment is made more affordable. The homeowners get to stay in the home and avoid having a short sale or foreclosure.
The Mortgage Modification Center
If you believe that a mortgage modification may help you stay in your home, please reach out to the Mortgage Modification Center at (401)467-7998. Attorney John S. Simonian offers a free initial consultation to discuss your options.
Attorney John S. Simonian is a Rhode Island and Massachusetts lawyer who specializes in bankruptcy law and mortgage modifications. Click here to learn more about Attorney Simonian.