What is a Short Sale?

A Short Sale happens when an asset is sold for less than the remaining loan balance, requiring lender approval. This approach helps avoid foreclosure but impacts the seller’s credit.

• Debt Forgiveness: Lenders may accept lower repayment.
• Extended Processing: Bank approvals slow down transactions.
• Credit Score Impact: Less damaging than foreclosure but still affects borrowing power.
• Buyer Incentive: Properties may sell below market value.

Short sales provide an alternative to foreclosure but require lender cooperation and patience.