A short sale is where a homeowner elects to sell their home for a lesser amount that the total amount due on their mortgage(s). Conducting a short sale can relieve the homeowner of their current mortgage payments and possibly stop any foreclosure proceedings against them.
A short sale is a complex real estate transaction where all parties involved (i.e.. investors, lien holders, homeowner’s associations and possibly mortgage insurers) must agree on the terms of the short sale. Upon completion of the short sale, homeowners will not receive any proceeds from the sale of the property and may be responsible for potential credit and tax implications.