What is a Short Sale?

A short sale occurs when a homeowner ask the bank or mortgage lender to allow them to pay back less money than what is owed for the property. This can happen from a job lose, a divorce, illness, interest rates or a drop in property values. The lender usually agrees to forgive the rest of the loan.  Many homeowners ask for short sales because it is better than having a foreclosure on record, however a short sale does have a negative impact on one’s credit report.  Check with your local laws and regulations before doing anything.  Hire a reputable real estate agent or attorney who is familiar with short sales.