What is a short sale and how does it differ from a foreclosure?

Photo: tyo

If you’re shopping for a home, you’ll probably come across at least one property that’s listed as a short sale.

Many buyers are unfamiliar with this term and don’t know how a short sale works.

To understand the process, you have to understand the situation that the seller and the seller’s lender are in.

A short sale occurs when a lender allows a delinquent borrower to sell her home for less than she owes on the mortgage because the home is now worth less than what she originally paid.

Get the rest of the details in my Mortgage-Calc.com article, What is a short sale and how does it differ from a foreclosure?

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