What is a Short Sale?

A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property. In addition, the property owner cannot afford or chooses not to repay the liens full amounts.

Therefore, the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.

Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.  That is why finding the right short sale specialist is paramount.

More FAQs

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    This question is asked very frequently and involves a number of unique variables. The first thing to keep in mind is that the moment you are 30+ days behind on your mortgage...
  • I Have Equity, Now When to Sell?
    With an equity position in your house, you are in control and have the flexibility to try and “time the market”. This is where a good real estate agent/team earns their money....
  • What is a Short Sale?
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  • What is an Equity Sale?
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