What is a Short Sale?
A short sale is a pre-foreclosure workout solution. It's a real estate transaction contingent upon the successful negotiations with the seller's lender(s), lien holders, and/or other third parties to accept a payoff of less than the total amount owed.
Banks agree to short sales because the foreclosure process is very expensive. It's a win-win scenario. The bank wins by avoiding an expensive foreclosure process and freeing up capital to invest. The seller wins by avoiding foreclosure, saving their credit and usually walking away owing no money!
