Short Sale Expert Specialist in Gulf Shores, Orange Beach, Foley, Daphne, Fairhope, Spanish Fort, Alabama

What is a Short Sale?  When a mortgage holder agrees to accept less than full payoff to release its lien on a property to accommodate a sale to a new owner. 

 Short Sale Information for Sellers of Mobile, Orange Beach, and Gulf Shores Area Beach Condos and Residential Homes

Do you owe more on your Gulf Shores real estate or Orange Beach condo or Foley, Fairhope, Daphne or Spanish Fort home in Baldwin County than it is now worth, but you still need to sell due to a financial hardship situation? You may have tried to sell your home or condo, perhaps even by owner, but found the real estate market is tough to sell a home right now. Have You Considered A Short Sale?

Teresa King is a short sale agent with RE/MAX and has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer local homeowners at a time when real estate in the south Alabama area is experiencing many distressed homes in the foreclosure process.

Short sales allow the cash-strapped seller in financial hardship to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. In some cases, your bank may have you sign a workout plan to cover some of the shortfall with an unsecured loan, usually at no interest.  Many sellers agree to this to preserve their credit, and pay back an amount negotiated with their bank.  With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures. The homeowner does not have to suffer foreclosure on their credit report, and the road to financial recovery is more quickly achieved.

Call me at 251-554-2661, or email me at to set up a consultation to discuss your options and to find out more about Short Sales.

Current Short Sales in Baldwin County Alabama

Daphne Short Sales

Fairhope Alabama Short Sales

Gulf Shores Short Sale Condos

  Certified Short Sale agent in Gulf Shores and Orange Beach AL

Mortgage Forgiveness Debt Relief Act and Debt Cancellation

If the forgiven debt is excluded from income, do I have to report it on my tax return?
Yes. The amount of debt forgiven must be reported on
Form 982 and this form must be attached to your tax return

Can I For Sale By Owner My Own Short Sale?

No. Your mortgage lender will require you to have your home professionally listed with a real estate broker who will be responsible for overseeing the extensive work involved with processing your Short Sale documentation and paperwork.  And frankly, why would you want to try to do this yourself? There will be no proceeds to the seller in a Short Sale, so why not have an agent assist you with your lender paying the real estate fees on your behalf?

Can I Use Any Agent for a Short Sale?

Yes and No.  Any agent can list it as a Short Sale in the MLS, and possibly get offers for you just as in regular real estate sales, but the similarity stops there. Unlike a regular real estate transaction, the short sale process involves intense communication and specific loss mitigation document transfers with your lender which are not a part of a regular home or condo sale.  The difference is, most agents ARE NOT TRAINED to process Short Sales and honestly, may NOT know what they are doing.  Frankly, why would you risk this important transaction with just any agent? The success of your offer getting bank approval on your Short Sale package is what you should be most concerned with and trained, certified agents have more than an 80% success rate over non-trained agents.  Local agents have seen listing after listing expire unsold in the MLS, and then show up as a foreclosure shortly after.  No mention of a possible Short Sale was made or attempted on the seller''''s behalf.  Why risk your credit and the successful sale of your home with just any agent?

What is a Short Sale?

A short sale is when your lender accepts less on your mortgage to avoid a possible foreclosure auction. In today''''s tough economic times, more and more home owners are turning to Short Sales to prevent a foreclosure proceeding marring their chances for a future home purchase when their finances are stronger.

The seller won't get any money from the sale of the home, but will avoid additional turmoil caused by a foreclosure proceeding, possible eviction, and more extensive credit damage.

Why would a lender accept less than what you owe for your home? Simply because so many homes have fallen into foreclosure today, and the cost to pay the legal fees to foreclose eat away at more of their bottom line.  Some lenders today are asking the homeowner to sign a note to cover some of the deficiency of the forgiven debt.  Each lender is different, so please call yours to ask about this possibility with your loan.

Are You a Good Candidate for a Short Sale?

  • Is There an Existing Financial Hardship Causing a Need to Sell?
  • Has The Income on Your Rental Unit Declined to the Point It No Longer Cash Flows and is Causing Financial Hardship for You to Maintain Much Longer?
  • Are You In a Default Situation and Your Lender has been Mailing You Notices?
  • Are You Facing Back House Payments and Can't Pay to Catch Up?
  • Do You Need To Sell as Soon as Possible to Avoid Foreclosure?
  • Do You Have Little Or No Equity In Your Home?
  • Have You Recently Moved Out of the Area and Are Struggling to Pay Rent and Maintain Your Old Mortgage?
  • Do You Owe More Than Your Home Is Worth?
  • Do You have a Notice of Default?
  • Do You have a Sale Date that Your Lender's Attorney has Mailed You?

Common Reasons This May Have Happened To You

  • You Have Recently Lost your Job in this Tough Economy or You Are Experiencing a Decrease in Income
  • You Have an Adjustable Interest Rate and Your Mortgage Payment Has Increased Dramatically and is No Longer Affordable
  • You Have Recently Moved out of the Area and your Home Has Not Sold
  • Your Medical Expenses Have Changed and Are Now Too High
  • Just Went Through/Going Through a Divorce
  • You Are Behind on Your Mortgage Payments
  • You May Have Even Tried to Sell Your Home by Owner Without Success
  • You Have No Equity in Your Home or Condo and Nothing Left to Pay a Realtor
  • You Cannot Afford the Cost of Selling Your Home  
  • The Rental Income on an Investment Property is No Longer Covering Your Expenses

What your lender will not accept: "The real estate market has changed and my home is no longer worth what I paid for it, so I want out."

Seller client testimonials- 

"Thank you for all your help and for making this sale happen. You are the best realtor I have ever worked with and I will refer you to everyone I talk to that is looking for a realtor. I knew the day that I found your website that you were the one who would sell our house. I had no idea it would take so long and it is probably a good thing that I didn?t know completely what to expect. It is so nice to know that we finally made it through to the other side. You have been excellent to work with throughout the entire process and helped make a difficult situation very manageable. You have been extremely compassionate, understanding and provided us with more guidance then you can imagine. Without your help we would have been lost, so we will forever be grateful to you for all you have done. You have been such a blessing to me and my family and we will never forget you.

BTW, you should be receiving a phone call soon from (name removed). She needs to sell her house and it will unfortunately be a short sale. I told her you are the best and to call you ASAP. We have known her and her husband for years from church and they will be great people to work with."

-Jennifer D.


"Our home had been on the market for 6 months (with another agent) when we found Teresa. We were immediately impressed with her professionalism, knowledge on the short sale process, market knowledge and attention to detail. She created a beautiful website for our home and within 5 weeks we were under contract! Teresa worked tirelessly on our behalf throughout the short sale of our home, which involves the processing of a large amount of paperwork and being a constant liason between our lenders and us. We are so appreciative of her efforts and determination in getting this sale closed. She was a pleasure to work with and we will certainly be calling on her services again in the future!"




"This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales," said Teresa. "It is so rewarding to be able to help sellers save their homes from foreclosure."

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors such as Teresa King with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

"Our goal is to educate as many people as possible so we can help as many homeowners as possible," Charfen said.

Information contained herein should not be construed as legal advice. Teresa is licensed to sell real estate and not licensed to practice law, so any legal questions need to be addressed by an attorney. Teresa has received extensive Short Sale, Pre-Foreclosure, and Foreclosure Training and has earned advanced Real Estate Designations for specialization in these areas.