Given the recent economic climate, many of the transaction we are working on today are what are called “short sales.” A short sale is a sale of real estate in which the purchase price is not sufficient to pay off the mortgages on the property. In this kind of situation, a negotiation must take place between the attorney and the mortgage lender, until the mortgage lender agrees to take a pay off that is less than the full amount owed. Once the mortgage lender agrees, the transaction proceeds just like the other; there is a closing, and as in a normal real estate closing, title changes hands.
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