What is a Short Sale?

I still get asked this question a couple of times a month! Usually a buyer or seller will confess to me saying something like..."I don't really understand what a short sale means?" So here is the official definition.

A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by leins against the property and the property owner cannot afford to repay the liens full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure, which mitigates additional fees and costs to the both the creditor and borrower. A short sale will often result in a negative credit report against the property owner, however it is less damaging than a foreclosure report.

If you are having trouble making your mortgage payment or need to sell your property for any reason and the balance you owe is more than the property will sell for call a Realtor. Most good Realtors will also have connections with lawyers who can give you sound advice and point out your options. Once you have an understanding of all the issues involved you will be able to make an educated decision. Feel free to visit my website for more sound advice http://www.realestateinpalmbeach.net/.