What is a Short Sale?
A "short sale" is when the bank accepts a sales price that is lower than the principal balance of the mortgage. In other words, the bank agrees to take less than is owed to them for the home.
Banks may be willing to do this when it is clear that their only other option would to foreclose on the property. When a bank forecloses on a property, they often pay thousands of dollars in legal fees, and then have to hire a real estate agent to sell the home at market price. Accepting a short sale allows the bank to take market price for the house without the additional expenses of the foreclosure process.
A short sale may have significant impact on the seller's credit and may result in other liabilities. Certified Home Rescue Experts are specially trained by Home Rescue Institute to help homeowners understand the potential outcomes.