MORTGAGE FORCLOSURE

What is a short sale? You may hear the term "short sale" by a real estate agent in different fashions, i.e. this is short sale because the seller is accepting less than the asking price, this is a short sale because the seller is accepting less than the fair market value, etc. But for terms of mortgage foreclosure, a short sale is when the seller and the lender agree for the seller to sell the house, either to the lender or a third party, and the lender will accept less than amount due on the mortgage. The lender usually forgives the difference and considers the debt repaid but there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. More on this in later blogs.