In today’s market, a significant number of homeowners are forced to deal with declining home values and job layoffs. It may seem that the only option is to “give” your home back to the bank, and deal with the ramifications of bad credit. But even though you foreclose on your property, you may still be responsible to pay back a portion of the mortgage loan.
So what exactly is a Short Sale and why is it a better alternatives to a Foreclosure? A Short Sale takes place when the bank allows your home to be purchased at an amount lesser to what you actually owe on the mortgage. The approval process may be lengthy, and the homeowner must prove their financial hardship, but a Short Sale is almost always a better option for struggling homeowners.
The following article, published by the National Association of Realtors, looks at the advantages of a Short Sale: