A 'short sale' happens when a bank agrees to allow a home to be sold to a buyer who offering less than the actual amount owed on the mortgage.
This is the quick definition, as there are many factors which come into question, such as:
Is there a second (or third) mortgage, or home equity loan to complicate the sale?
Is the seller already falling behind in payments?
Are there other options for the seller through programs to help them stay in the home?
Don't hesitate to seek help if you think that your mortgage payments will be a problem soon.
If your home located in the Big Rapids, Stanwood, or Canadian Lakes, Michigan area, (or Mecosta, Newaygo, Osceola or Montcalm Counties), I would be happy to discuss your options, or direct you to a housing counselor in your area.
It may be possible to avoid foreclosure if you act now. No obligation consultation.
Certified with the National Association of Realtors, with the SFR designation.