What is a Short Sale?

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.

Click here for more information and the answers to other Frequently Asked Questions about Short Sales.