Wikipedia defines a “Short Sale” as:
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditor’s is known as a deficiency.[1] Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties (in most cases the borrowers can negotiate that any deficiency amount can be forgiven and the lender will agree to not seek a “deficiency judgement”)
A short sale is often used as an alternative to foreclosure, which mitigates additional fees and costs to the both the creditor and borrower. A short sale will often result in a negative credit report against the property owner, however it is less damaging than a foreclosure report.
Avoid Foreclosure and Relieve the Stressful Burden of Owning an Unwanted Property
RPM works with local specialists who will handle every detail of the short sale process.
Contact us today to learn how we can help.
Related posts:
