Short Sales

If a willing lender is involved, it may be possible for a seller to negotiate a payoff amount lower than what is required to satisfy their existing loan and closing costs. In this scenario, the lender agrees to accept the available equity in the property, and the seller receives no proceeds from the sale. The short payoff condition must be included in both the Purchase Agreement and Escrow Instructions. The lender's payoff demand may include limitations on closing costs and payoff amounts to other creditors. Throughout the Escrow process, the seller and real estate agent should be proactive in providing accurate numbers to the lender. All possible expenses should be included in the seller's "net sheet," and they should be aware of the bottom line. Any significant changes or discrepancies should be brought to the attention of the Escrow Officer. The lender will establish a minimum payoff figure, but its willingness to adjust that figure may vary.

The role of your Escrow Officer is crucial in reporting the numbers and meeting the requirements of the short payoff lender. By working closely with your Escrow Officer to prepare preliminary "net sheets" for the lender, they will be familiar with the specific requirements of these transactions and can closely monitor the process to ensure a successful closing.

Our escrow officers possess extensive experience and training to anticipate potential complications in advance and address them effectively. By entrusting your Short Sale transactions to Escrows For You, you can rest assured that you are working with credible and knowledgeable experts in the field.

Please note that this information serves as a general guide and should not be considered a replacement for customized financial advice. Prior to entering into a Short Sale transaction, it is recommended that you seek the advice of a tax advisor or legal counsel.