Short sale definition and most common questions. Short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on the loan(s) secured by the property being sold .In a short sale, the bank / lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor / seller. How is a short sale different than foreclosure? Foreclosure: Foreclosure stays on your record for many years to come. · There are no prior negotiations with your lender. · You are Not selling the property you are loosing it. · Possibility for deficiency judgments. · Foreclosure is not the end of your problems in most cases it’s just the beginning. · On a foreclosure the lender may still have recourse against you if the property is sold at a loss at the foreclosure auction. · It will be harder to get a good job. · It will be more difficult to get credit cards and even to rent a place to live. Short Sale: You sell the property before foreclosure: · All the terms are agreed upon with your lender. · The damage on your credit in most cases is only the missed payments you already have listed on your credit report. · There isn’t a possibility for deficiency judgment because the lender agrees to allow you to sell the property. · It will take less time to repair your credit. · It’s a settlement once the terms are met it’s over. Will a short sale stop my foreclosure? · The answer is YES. But only if it’s submitted to the right person or department at the bank/lender. · All the documentation required is already on file with the lender. · A valid offer is at hand ready to be submitted. |