What is a Short Sale?
A short sale is when a mortgage lender agrees to accept a mortgage payoff in an amount that is less than what is owed in order to facilitate a sale of the property by a financially distressed owner. A short sale has to be approved in advance by the mortgage lender. There are two critical factors most lenders will consider when approving a short sale: *The home is preferred to be worth less than what the homeowner currently owes on it. The lender will want to review recent sales of comparable properties to make sure this is the case. *Preferably, the seller can prove financial hardship. They should show that they don't have the income or assets to pay back the rest of the outstanding balance on their mortgage. While a seller's credit will take a negative hit as a result of a short sale, it is often less than a foreclosure. But with some patience and work, all parties can get some sort of benefit in a short sale. In the end, a short sale is about avoiding worse outcomes. Sho
