What is a Short Sale?
A Short Sale is a homeowner to buyer sale where the homeowner’s lender approves the sale even though the net proceeds do not pay off the total payoff amount. The payoff amount includes the principal balance, interest owed, late fees, and any other attorney fees associated with the loan. A Short Sale is known to be a more dignified conveyance because it is done with control of the homeowner. Borrowers who have sold on a Short Sale are able to repurchase a home within 2 years in most instances, where a foreclosure can be on a borrowers record for life causing problems with employment, promotions, insurance costs and security clearances. A foreclosure will also cause higher level of problems for borrowers who are trying to purchase anything on credit. Higher interest rates and fees along with more stringent terms can haunt a borrower for many years.
