Short Sales
Protect Your Home & Your Financial Future
Are you struggling with an underwater mortgage? Facing the possibility of foreclosure? A short sale could be your best option to avoid foreclosure while minimizing the financial impact on your future. At Grausso & Foy we help homeowners navigate the complex short sale process with expert legal guidance, ensuring the best possible outcome for your situation.
What is a Short Sale?
A short sale is a real estate transaction where your lender agrees to let you sell your home for less than what you owe on your mortgage. This process helps homeowners avoid foreclosure while allowing lenders to recover a portion of their investment. Unlike foreclosure, a short sale is a negotiated process where you maintain some control over the outcome.
Key benefits of a short sale:
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Avoid foreclosure and its severe impact on your credit
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Reduce financial liability by settling your mortgage for less than you owe
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Move forward with your life without the burden of an unaffordable mortgage
Do You Qualify for a Short Sale?
To be eligible for a short sale, you must meet certain financial criteria. Here are four key factors that lenders typically consider:
Financial Hardship
Unexpected life events—such as job loss, medical expenses, or divorce—can make it difficult to keep up with mortgage payments. Lenders require proof of financial distress to approve a short sale.
Negative Home Equity
If your home’s market value is lower than the remaining mortgage balance, selling it conventionally may not be an option. A short sale allows you to sell the home without paying the full loan amount.
Missed or Struggling Payments
If you have already missed mortgage payments or are finding it difficult to stay current a short sale may help you avoid foreclosure and minimize damage to your credit score.
Limited Refinancing Options
If you’ve explored refinancing or loan modification but were denied or deemed ineligible a short sale might be your best alternative to resolving your mortgage debt.
The Short Sale Process
Step 1:
Consultation & Financial Review
We start by reviewing your financial situation to determine if a short sale is the right option for you. Our legal team will assess your mortgage balance, property value and hardship circumstances.
Step 2:
Submitting the Short Sale Package
Lenders require specific documentation to approve a short sale, including:
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A hardship letter explaining why you can no longer afford the mortgage.
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Recent financial statements, tax returns and bank statements.
A purchase offer from a qualified buyer. We handle all document preparation and submission, ensuring accuracy and compliance with lender requirements.
Step 3:
Negotiation with Your Lender
We work directly with your lender to negotiate the best possible terms. Our goal is to get approval for the sale while minimizing any potential liability on your part, such as deficiency judgments (where the lender attempts to collect the remaining balance after the sale).
Step 4:
Finding a Buyer & Closing the Sale
Once your lender approves the short sale and your property is sold you are released from the mortgage debt. We ensure a smooth closing process to help your transition to the next chapter of your life.
Frequently asked questions
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