What is Short Sale

A short sale occurs when sale of a property in which the proceeds fall short of what the owner still owes on the mortgage. It is possible lenders will agree to accept the proceeds of a short sale and forgive what is owed on the mortgage when the owner cannot make the mortgage payments. It is advantages for a lender to accept a short because the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he or she owes.

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