It is a process in which a homeowner in distress, when selling the property, will ask their lender to accept a payoff shorter than what they owe; therefore avoiding a foreclosure entry in their credit report, in the case they no longer can afford their mortgage payments.
Normally, the lender in order to allow a sale to occur, agree to discount an outstanding loan balance, usually due to an economic and financial hardship on the part of the mortgagor and other market circumstances.
The mortgagor (homeowner) sells the mortgaged property for less than the outstanding balance of the loan, but usually at the fair market value and the mortgagee (lender) keeps the proceeds of the sale, in some cases, in full satisfaction of the mortgage debt.
The lender must approve a proposed sale, in advance for the sale to occur.
The homeowner in most cases is not allowed to keep any profit, unless they
qualify for any particular government program such As HAFA.
A short sale usually is executed to prevent a foreclosure.
Often a bank will agree to a short sale if they believe that it will result in a smaller financial loss than going through the lengthy and expensive foreclosure process.
For the home owner, the advantages include the opportunity to salvage some of their credit standing by avoiding foreclosure on their credit history and, and at least, partial control of the monetary deficiency.
Our services are ALWAYS to the homeowners.
Our relentless persistence and ability to communicate common senses to the lender's negotiators have resulted in tremendous discounts and maximum closing costs allowances for the seller and maximum commission to the Realtors.
- We understand the current government (HAFA) and other programs and will assist you with its implementation.
- We will not charge any upfront fees to the seller or Realtor
- We will always strive to get the realtor's full commission
- We will never demand a share of the Realtor's commission
- We have experience and a strong relationship with the lenders
- We understand each particular lender's unique guideline requirements
- We have our team of expert professional negotiators working full time.
- We have the experience of the financials and other proper documentation needed for the consideration of the short sale approval.
- We have a very high rate of successful approvals
Diane Kenny negotiates all short sales. Diane worked for a mortgage brokerage firm from 2003 – 2008. When the housing market started to plummet is when she began working with PMC PRIME PROPERTIES and Mp Financial Solutions, LLC. Diane brought the knowledge of the inner workings of lenders financial process. This has been why we have been able to close 98% of our short sales.