The 'short' in the title of this presentation refers to the fact that the "payoff" amount agreed to in the transaction is indeed, "shorter" than the mortgage balances on the property.  This is a technique where it is a win-win of sorts for most all of the parties involved in the sale.

There are three stages of a property that is a subject of Foreclosure:

1. Pre-Foreclosure: This includes a short sale, deed in lieu of foreclosure, cash for keys, quitclaim deed, reinstatement of mortgage, forbearance agreement etc.
2. Foreclosure: At the sheriff's auction lenders bid against everyone else to gain control of the property deed.  Most liens against the property are extinguished after this action.
3. Post-Foreclosure: Majority of the properties that are subject of a foreclosure end up in the category.  The property then becomes a liability to the Lender, FHA (HUD), or VA and all except VA hires a Real Estate Broker to list and sell the property.  HUD and VA properties are on the Internet.

Difference between a "Short Sale" and a "Foreclosure"

Short Sale is a process where a negotiated settlement is made between the lender that holds the mortgage and the seller for a third party buyer usually facilitated by a professional like a Realtor, even before the foreclosure process is initiated by the lender.  Therefore it is considered a "pre-foreclosure" sale.  Foreclosure may be the only option, if there are too many liens and other issues clouding the title, as a "cleansing process" to clear up the title.

Triangle Short Sale Listings

Michelle is a certified North Carolina Short Sale Specialist. The Certified Short Sale Specialist (CSSS) Seller Agent designation is the first and only North Carolina state specific Short Sale designation.  The CSSS designees are real estate professionals dedicated to help North Carolina homeowners who find themselves in a position of owing more than their property is worth.  CSSS designees understand the Short Sale process, transactional entities, they can identify predatory servicing tactics, know who the decision makers are in the Short Sale process, and can guide the consumer to the appropriate NC State regulatory agencies if necessary.