Short sales currently make up over 9% of all real estate transactions nation wide and continue to grow. With this popularity we have noticed more people asking us if a short sale is right for them when they have to move. The first step is to understand a what a short sale is and how it can be used as a tool in selling property.
A short sale is a sale of real estate where the proceeds from the sale of a property will fail to satisfy the debt owed on the property's loan. It often occurs when the borrower cannot sell their home for more than what is owed, but the lender decides that selling the property at a loss is a better decision than initiating the foreclosure process. The short sale was previously reserved for people who fell delinquent on their mortgage, but now has become a more sophisticated tool for homeowners needing to remove themselves from a property.