What is a short sale?

Today’s real estate markets are adjusting all over the country. Home prices are trending downward in more than half the major markets. Add the popularity of minimum-down and no-down loans, interest only loan programs and the many ‘optional-payment’ ARM’s with potential negative amortization and you end up with mortgage balances greater then the values of the homes being sold or refinanced.

This phenomenon has caused the rise of what is called ‘Short Sale’ transactions. A short sale occurs when the debt secured by the property offered for sale exceeds the net sales price. Under that scenario, one or more of the lenders who have a note secured by the property may accept less than the amount actually owed in the payoff of the loan amount.   For more................