In declining markets, defaulting borrowers may find that they owe more to their mortgage lender than their property is currently worth. In order to avoid foreclosure, the borrower may seek to find a buyer. However, given the declining market conditions, the sales proceeds will not likely suffice to pay back the lender in full. In these situations, the lender may agree to accept the lesser amount in full satisfaction of the loan rather than pursue foreclosure.
If the lender agrees to a short sale, there are unique requirements for the issuance of title insurance. Newman Title is well equipped to move these specialized transaction to closing quickly and efficiently. We ensure that all necessary approves, disclosures and notifications are made in a timely fashion.