 Definition of a Short Sale: A short sale is the process of selling a property for less than what is currently owed on the loan(s) and negotiating with the lien-holder(s) to accept the proceeds of the sale and forgive or settle the remaining debt (deficiency balance).
Short sales are used when the amount owed on a property is more than its fair market value in the current market. By accepting a short sale, the lender avoids the lengthy and costly process of foreclosing on the property. |