What is a short sale?

Individuals who are in danger of losing their homes may have the option to “short sell” their homes rather than suffer foreclosures. In order to short sell a home, though, a mortgagor must have permission from his or her lender. This is because in a short sale, the amount obtained in the sale is less than the money due on the property, hence, it is “short”.

Often, a short sale is a more favorable outcome for home owners, as short sales are much less damaging to credit scores than foreclosures. Both parties, the lender and the mortgagor, must agree on a short sale in order for a real estate transaction to be approved.

If you have questions about short selling your home, contact a West Palm Beach foreclosure defense attorney of Eric N. Klein & Associates, P.A., at 561-353-2800.