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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.

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