A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.
- Might be good for homeowners that are “upside down” on the mortgage.
- May not hurt the homeowners credit history as much as a foreclosure which may result in being able to qualify for another mortgage sooner once they get back on their feet financially.
- Time wise, a short sale can take many months from start to finish. Sometimes buyers grow tired of waiting and move on to another home.
Taken from Real Estate newsletter provided by: Patty Peck – Keller Williams Realty, Smyrna, GA at http://pattyisinthehouse.com/
Reprinted by Jane Nowak CFP® CDFA™ Kring Financial Management, Smyrna GA 770-333-0113 x110
Securities offered through Triad Advisors, Inc. Member, FINRA/SIPC.