What is a short sale?
A short sale is used as an alternative to foreclosure. It is a sale of real estate in that the proceeds from the sale of the property falls short of the debt owed, such as to a mortgage company.
If the property owner cannot afford to repay the liens’ full amount, then the lien holder may agree to release the lien on the property and accept less than the amount owed.
When purchasing property that is in the short sale process, a buyer and seller must be prepared for the purchaser to take longer than normal, and more paperwork maybe required. Although this can be a time consuming and sometimes frustrating experience for both parties of the transaction, the results can be favorable for both the buyer and the seller.