Definition: A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.

 

If the unpaid balance of a loan is, say, $100,000 and a property sells for $90,000, under a short sale the lender might accept $90,000 as payment in full.

 

By completing a short sale, homeowners can walk away from their properties without having a foreclosure reported on their credit - all while having their mortgage debt completely forgiven by the lender. Even if the homeowner is not in danger of foreclosing, the short sale process allows them to get rid of an investment that is only decreasing in value.

Do you currently owe more on your property than what it's worth?

You may be able to walk away from your property without having a foreclosure on your record, and without owing the bank anything. You can relieve yourself of the bad investment, the stress, and the burden.

Before you know it, you’ll be returning to purchase a new home.