What is a short sale?
As foreclosures hit record levels more sellers are turning to short sales as a way to avoid foreclosure. So how does it work? In a short sale the seller must show financial hardship in that they can no longer afford to keep and maintain the property. The seller puts the property on the market for sale and arranges with their mortgage lender to accept a price that’s less than the amount they owe on the property.
What is a foreclosure?
Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. The foreclosure process begins when a borrower/owner defaults on loan payments (usually mortgage payments) and the lender files a public default notice, called a Notice of Default or List Pendings.