With the advent of "Short Sales" being a class or type of sale these days, one would think it would have a definition, clear and easily explained. I have found it to be anything but.
A "Deed in lieu of Foreclosure" is another type of sale with a different meaning and consequences to the seller.
I have heard most often the in simple terms, a short sales has the deficiency forgiven by the lender and a deed in lieu results in the lender coming after the seller for any deficiency.
The latter term is when the seller simply drops off the keys and issues a deed conveying the property to the lender. A great cost savings to the lender looking to get control of the property from the property owner.
My issue is that some lending institutions are calling it a short sale so long as a seller agrees to sign an unsecured note of some sort for any deficiency. I call this a deed in lieu of foreclosure, not a short sale.
I welcome your comments!
Kevin
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