What is a Short Sale??
A Short Sale is when your mortgage holder/ lender agrees to receive less than what is currently owed on the mortgage, including any late fees, penalties, interest, etc.
Why would a lender accept less than what is owed?
Many lenders have realized that negotiating and accepting a Short Sale is less expensive and tedious for them than going through the foreclosure process.
What are the requirements for a Short Sale?
The borrower has to be in an ongoing financial difficulty that does not allow them to continue to make payments on their property. Typically, the lender will require you to disclose all of your financial information as well as a statement of Financial Insolvency.
Depending on the kind of loan you have and the lender you are with, there are some other requirements and criteria. Some additional information is available on Home Affordable Foreclosure Alternatives, a government-sponsored program (HAFA)
What should my next step be?