Is a sale of property in which the proceeds from the sale fall short of the balance owed on the loan or loans secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the property owner in exchange for the sale of the property to third party.
A short sale is typically executed to prevent a foreclosure. It is the sale of a home when the sale proceeds do not fully pay off the existing loan(s) and the lenders(s) accept a discounted payoff to satisfy the loan(s). Lender negotiations are critical and require the expertise, experience and strong working relationships with mortgage companies and banks that are provided by agents.
Short Sale vs Foreclosure