A Typical "Short Sale" has 3 key factors

Short Selling, a Foreclosure Alternative

 A Typical "Short Sale" has 3 key factors

The prospect of foreclosure is difficult for a homeowner, but there is another option.

A little-known alternative, once more commonly used in the real estate downturn of the early '90s, is the ""Short Sale"," a typical "Short Sale" has 3 key factors 1.)A homeowner falls behind on his or her mortgage payments, usually due to a job loss, rising debt payments, family illness, raising interest rates or adjustable rate mortgages 2.) The   home owner / barrow is also facing a situation in which the homes value has fallen rapidly and cannot be sold for the amount of the mortgage owed. 3.) The homeowner is willing to Sell the home based on today's market and provide all funds received from the sale directly to the lender. i.e. the Seller receives nothing from the proceeds.  

If the amount of the sale is for less than the amount owed on the mortgage, and the lender agrees to accept less then lender just agreed to a "Short Sale". At the closing the proceeds of the sale go directly to the lender and the balance of the debt is discharged.

If a "Short Sale" can not be negotiated in a timely manner then the home will move to
 foreclosure. In Georgia homeowners who can no longer make payments are served with a notice of foreclosure, which essentially informs them to either bring the loan current or face the home being taken over and sold at a public auction the first Tuesday of the month at the county court house.  While the foreclosure is in process is going on, the homeowner can live in the house offer it for sale and try and complete a "Short Sale" up until the foreclosure date.