What is a Short Sale?

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A short sale is where a homeowner sells their home for less money than they owe on the property. The owner of the home negotiates a discounted payoff with their mortgage company without having to come up with cash to cover the shortfall. At the conclusion of a short sale, the mortgage and any liens on the property are deemed satisfied and any foreclosure process stops.

Other Real Estate Lawyer FAQs

Q: Should I Buy a Short Sale Home?
A: Buying a home that has previously been sold back to a lender in a short sale can be a great deal, but it also comes with potential problems. Banks and other lenders … More
Q: How Does the Short Sale Process Work?
A: The first step in a short sale generally is to contact your lender and determine what is required to initiate the process. You may also want to consult with and/or … More
Q: Is a Short Sale Right for Me?
A: If you are wondering if a short sale of property is right for you, you should know that it is a highly individualized and personal issue. However, there are some … More
Q: What Are the Alternatives to a Short Sale of My Property?
A: A short sale of property may be the best option for curing your current housing problem, but it is not the only option. You may be able to arrange for a loan … More
Q: Do I Have to Pay a Realtor Sales Commission in a Short Sale?
A: In standard home transactions, the seller and buyer reach an agreement for how the sales commission to a Realtor will be paid. Sometimes a buyer and seller will agree … More
Q: Will Selling my Home in a Short Sale Affect My Credit Score?
A: Selling your home in a short sale will negatively affect your credit score, but how much will depend on many factors. Your payment history, your ability to pay other … More
Q: Why Would a Lender Agree to a Short Sale?
A: Banks and other lenders generally agree to short sales in order to avoid having to foreclose on a property and take it into their inventory. Most lenders would rather … More
Q: Will My Lender Accept the Short Sale as Payment in Full for My Loan?
A: Maybe. Your lender is not required to accept the short sale payment to satisfy your loan amount. The company may decide that you and your property do not qualify for … More
Q: Can My Lender Come After Me in Court for the Loan Balance I Owe After a Short Sale?
A: This depends in part on whether the property in the short sale is located in a judicial or a non-judicial foreclosure jurisdiction. In non-judicial foreclosure, also … More
Q: Do I Qualify for a Short Sale?
A: In order to sell a home in a short sale, the borrower generally must be able to show they are unable to pay their mortgage and currently are experiencing a financial … More