What Is A Short Sale?

A short sale is a sale of your home for less than what you owe on your mortgage. If your lender
agrees to a short sale, you may be able to sell your home to pay off your mortgage, even if the
sales price or proceeds turn out to be less than the balance remaining on your mortgage.

A short sale is an alternative to foreclosure, but because it is a sale, you will have to leave your
home.

If you live in a state where you are responsible for any deficiency, which is the difference between
the value of your property and the amount you owe on your mortgage loan, you’ll want to ask your
lender to waive the deficiency before you go through with a short sale. In some states, after a short
sale, your lender could sue you to collect the amount of the deficiency if the deficiency was not
waived.

If you are faced with financial difficulties and anticipate a short sale, first contact your lender to see
if a loan modification is possible. If not, your next step is to hire a REALTOR® and a real estate
attorney who specializes in short sales.