Understanding Short Sales and Their Impact on Property Titles

1. Short sales happen when a seller owes more on their mortgage than they can sell the house for, usually due to financial hardship.
2. Lenders must agree to a short sale, and any lienholders on the property must also approve it.
3. Short sales can damage a seller’s credit and may result in them owing taxes on the difference between the sale price and the amount owed on the mortgage. 1. Short sales may benefit buyers by allowing them to purchase a home at a lower price.
2. Buyers often take ownership of the home on an “as-is” basis after a short sale.
3. The title is cleared for the buyer, and they take full ownership rights.
4. Liens on the former mortgage do not get passed along with the home in a short sale.
5. Topouzis & Associates, P.C. can help with the closing process for those considering buying a home in a short sale.

What are Short Sales and How do They Affect Title?