In real estate, when we talk of a short sale, it refers to a situation where a homeowner sells their house below the mortgage price.

For a homeowner to short sell their home, they have to be in some form of financial distress. Therefore, the homeowner needs to prove a great degree of financial stress to the lender, and it is only upon approval of the lender that a short sale can go through.

So, a successful short sale may imply that a buyer has a mortgage for $100,000 and sells his home for $80,000. The interesting thing about a short sale transaction is that the lender may decide to claim the remainder of the mortgage amount. To get this pending due sum, the lender will need a deficiency judgment.

You can check out the benefits of a short sale here (maybe an internal link?)

If you have a home you can prove you’re a victim of a financial situation that will make it impossible for you to pay the entire mortgage, then you can be eligible for a short sale. Remember that to convince the lender, your financial demise MUST be new and not something previously withheld.

From here on you’ll need to find a buyer and get the transaction approved by the bank. This may take days or months depending on how you get it done.

If you need help effortlessly completing a short sale for your home, you can work with an expert from Bright Horizon.