What
is a Short Sale?
A Short Sale is a win-win solution for the home owner and the lender. The lender
gets the highest price for a quick sale at a market price. The borrowers get
their credit restored and generally get relief from possible future legal
actions and deficiency judgments.
Short Sales occur when borrowers sell their property for a sales price less than
the amount owed to their lender(s) after all sales expenses, including brokerage
fees, are taken into account. In order for this to take place the lender(s) must
accept a discounted payoff; meaning the bank(s) get paid less than the full loan
amount owed. In a short sale, the homeowners get complete relief from all of
their mortgage debt.
The end result is your home is sold, the mortgage is satisfied (paid off) and
you avoid a foreclosure or a bankruptcy in the event of hardship. Perhaps even
better, your credit rating will almost immediately improve because your credit
report shows that your mortgage was paid in full.
