shorts sales

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

It’s very important to remember that a short sale agreement does not necessarily release the borrower from their obligation to pay the remaining balance of the loan, which is known as the deficiency