Just because you sell your home for $20,000 less than you owe the bank, doesn't make it a short sale, if you have the ability to bring that $20,000 difference to the closing table. Unless you can show hardship, of one sort or another, the bank is unlikely to agree to absorb the loss for you.
The bank looks over all the offers and accepts the most palatable one. If the bank accepts a short sale, the foreclosure is stopped. The owner does not garner a foreclosure on his credit record, or a deficiency judgment chasing after him for a lifetime. If you have any questions please feel to call or ask a agent that kowns how to work short sales.
Licensed Real Estate Agent
Century Homes Realty Group llc
Direct Line: 347-932-0609
Certified Buyer Representative
Senior Real Estate Specialist
Century 21 Princeton Properties
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In the simplest definition, a short sale happens when a seller cannot sell their home for enough money to pay off everything they owe on the home.
Often, a lender agrees to accept less than the mortgage balance in exchange for clearing the title to allow a buyer to purchase the home. In exchange for that, the seller's mortgage lender usually gets to approve all of the terms of the sale and the seller cannot profit from the sale.
Short sales are usually less expensive for a lender than actually foreclosing. They can be complicated and taker a long time for the lender to approve things.
Hope that helps,
CENTURY 21 Alliance - Audubon, PA