What is a Short Sale?

A “Short Sale” or Pre Foreclosure is a sale where a lender agrees to take less than the full amount due on the loan on the property. If there is more than one lender, it is the junior lender (as measured by time of filing of the deed of trust) who is in the greatest danger and should be willing to take less than the full amount due. The reason for this is that, if there were a foreclosure by the holder of the most junior lien, they would not get the full payment. If there were a foreclosure by a senior lender, such as the holder of the first, the junior lien holder(s) could get foreclosed out, potentially getting nothing.

Institutional lenders understand this, and usually do not want to take a property back as a foreclosure into their Real Estate Owned (“REO”) department, since this is an expensive process, and looks bad on their record with the regulators. They will usually work with you, but you have to find the right person to talk to.

If the junior lien holder is a hard money lender, friend or family member, you may find it difficult or impossible to negotiate with them. You may not have a saleable property. One phone call may make that clear, contact Carmen Miranda today to discuss the pros/cons of Short Sale or Pre Foreclosure Purchase, 650 59 82800

Where can I find Short Sales?

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