What is a short Sale?
A short sale is a real estate transaction that occurs when homeowner cannot longer make their house payments and want to sell their home at the current market value (to avoid foreclosure), which could result in most cases in a short pay off to the lenders, because the loan balance is higher than the current resale value.
If lenders are willing to accept less than the full mortgage payoff, the homeowner could then list the property with a real estate agent (agent should have experience with short sale). They short sale the property and allow the borrower's debt to be forgiven in most cases.
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