A short sale is a transaction where the proceeds from the sale of a property are less than the balance owed on the mortgage. In other words, the lender agrees to accept less than the amount owed in order to avoid foreclosure. Short sales can be a good option for homeowners who are facing financial hardship and are unable to keep up with their mortgage payments.
There are many benefits to short sales. For homeowners, short sales can help them avoid foreclosure, which can damage their credit and make it difficult to qualify for a mortgage in the future. Short sales can also help homeowners save money on closing costs and other expenses associated with selling a home. For lenders, short sales can help them avoid the costs of foreclosure, such as legal fees and property maintenance. Short sales can also help lenders recoup some of the money they are owed on the mortgage.