A short sale is a sale of a home where the proceeds from the sale may not be enough to pay off the lien owed on the home. Normally a short begins after the owner has defaulted on their loan and decides to short sale. In most cases the lender will give the seller different options such as: died in lieu, a loan modification (if anyone reads my blogs, please email me if you succeeded with a modification) another option is the short sale of the property. In most cases home sellers will opt the short sale option. I think the number one reason people may consider a short sale is due to the fact they owe more on the home than what its worth.
Keep in mind when you short your home the short sale agreement does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency
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