What is a Short Sale?
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts. The lien holders would have to agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower; however, both will often result in a negative credit report against the property owner.
Check Out These Programs Before You Short Sale Your Home
Click Here To Find Out If You Are Eligible For A Home Affordable Refinance
Home Affordable Foreclosure Alternatives (HAFA) Program Information
How To Find A Real Estate Agent
If your mortgage is owned by Fannie Mae or Freddie Mac, you may be eligible for a Home Affordable Refinance and take advantage of lower interest rates.
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