short sale on home

If you are goign to do a short sale, you need to make sure that the bank approves it. With otu the bank approval you will nto be able to sell short.

Once the banks approves your short sale, you need to make sure that the terms are properly documented and they do nto come after you for the differnce.

But after short sale, it will show up on your credit rpoert and your score will drop by 150 points.

As to the release from liability it is best to receive the original note(s) back from the lender, however this will not happen until after closing. Will the lender release the seller from the unpaid balance and what is the mechanics to acomplish it will be arrived at via negitiation with the lender. This negitiation should be in writing and may take 3 or more months to result in terms accpetable to the borrower. The lender certialy would love to sell the property and keep the borrowers on the hook. The lenders willingness to offer any terms other than that already stipulated in the existing note(s) and mortgage(s) is based upon the lender believing that they getting maximum recovery. The lender will evaluate the current income, expences, assets and liabilities of the borrower The lender recovers substantially more in a short sale than in a foreclosure. This is acomplished because the seller/borrower cooperates in the transaction and the property is sold to an arms length buyer at todays market value. The primary leverage the borrower has is participation in the orderly sale of the property and the best time to hammer out an agreement with the lender is BEFORE the sale closes. Failure to arrive at terms prior to closing means the seller should assume they are responsible for the unpaid balance and for decades to come.

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