The economic challenges that so many are facing have resulted in many homeowners needing to sell, but owing more on their home than the home is worth. A short sale is a real estate transaction where the sales price is insufficient to pay the debt and obligations on the property along with the costs of sale, and the seller is unable to pay the difference.
Every short sale is dependent upon the seller’s lender agreeing to the transaction and agreeing to release the lender’s interest in exchange for less than what is owed. In some cases however, the lender’s approval of a short sale does not necessarily mean the lender relieves the seller of liability for repayment of the entire debt.
A short sale is a very complex transaction that involves numerous issues as well as legal and financial risks. Information on our website addresses some of these issues and risks, but isn’t necessarily fully comprehensive. You should always get the advice of a lawyer and tax professional before proceeding with a short sale.