Short Sale Basics

January 28th, 2010

What is a Short Sale?
A Short Sale occurs when a Lender approves the sale of a property for less than the amount that is owed on a mortgage or mortgages. The name, Short Sale, comes from the fact that the Lender’s payoff is coming up “short”. In fact, the lender will also be paying the real estate commissions and other closings costs. The sellers in a short sale typically cannot receive any funds from the sale.

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