What is a short sale? While that question is not as common today as it was a few years ago, short sales are still an option for homeowners who want to avoid a foreclosure.
A short sale is when a lender agrees to sell a property for less than what is actually owed to them. If you have a mortgage on your home and you owe the lender $300,000, but you can only get $250,000 for the home and the lender agrees to accept that amount, it would be considered a short sale.
Now, a short sale in the eyes of a homeowner is often a tool used to avoid a foreclosure. There are generally three repercussions of foreclosure that homeowners need to be aware of if they are in a financially stressful situation and need to avoid foreclosure: credit damage, deficiency judgement, and tax liability.
A short sale is not a perfect solution, but it is a tool homeowners can use to minimize the damage.
Contact us you have questions about a short sale, or want to know if a short sale would be right for your specific situation. We would be happy to help you!