Technically speaking, it is when the proceeds of the sale are not enough to cover the amount of your outstanding loan balance. So, if you have a property which is for sale at $300,000 and you owe $350,000 on it, you have a shortfall of $50,000 plus whatever the transaction fees you might find. That would be a short sale. In fact, even if the home would sell for $350,000, the amount of loan with the extra transaction cost for the sale of the home, you would still have technically short sale. Now … (0 comments)
short sale: Surviving The American Dream: The argument for 'Walking Away'
- 01/05/12 07:07 AM
In Mike Coopers post on the 'Short Sale of Convenience' he touches on what I believe to be an important but controversial subject, strategic default (ending in either short sale or foreclosure). I was most surprised by the vast majority of comments concluding that anyone that can afford their mortgage payment on an underwater home should 'do the right thing', stay in the home and honor the commitment. Perhaps my views are in the minority, but the arguments against strategic default are based on perceptions of the legal, moral and ethical issues of what still appears to be a poorly understood … (109 comments)
What is a Short Sale?
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