A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In most cases, the difference is forgiven by the lender, and in others the homeowner makes arrangement with the lender to settle the remainder of the debt.
Benefits to Sellers:
- Benefits to Lender:Seller avoids foreclosure
- Avoid just “walking away” and letting a house foreclose
- Seller can continue to live in the property while not making payments
- Lender pays all real estate commissions
- Property is priced competitively and reduces days on market for selling
- Lender avoids foreclosure
- Lender avoids foreclosures fees, etc.
- Lender avoids having to rehab property
- Lender can sell property for more during a short sale than a foreclosure
- Property is priced correctly and SOLD in a timely manner