A Short Sale is a one kind transaction which is happened to sale your house even when you hold a high value debt which is more than the value of the house. This is an option which mainly use by the people to avoid the foreclosure. Everybody who is going for foreclosure may not qualify for that option because there are some measurement criteria. That if you have no equity to sell your house to pay your outstanding or you have some valid reasons for not to pay owe, then you may qualify for short sale in stead of going for foreclosure.


When you feel that you are unable to pay the last few months’ payments. Then you see your build up equity is going negative. So you can call an expert for the short sale process. There is some short sale expert people will come and examine your condition to precede further. He may inspect your house for repairing and cleaning and also take photo after that for the presentation to the new buyers.

When the short sale expert receives many offers to buy that house from the new buyers, he will go to the bank to present the offers for some better negotiations. After that the bank will file a NOD which is a notice of default and also the bank allow 3 months period of time to the defaulter for short sale procedure. The new buyer also gets a period for completing financial functions and closed a written third party agreement provided by the bank. After that you may save some money for the new start and for getting an affordable new resident.

A short sale is a good way to get relief from your huge debt and you may feel luck one having offer for short sale instead of filling a foreclosure which is a black spot on your credit records. After a short sale you have a chance to begin again your life without any old debt.

Foreclosure has become of the most common phenomenon in the last 2 years. Millions of people have faced foreclosure as they do not even know wheat to do. Many people do not even know the difference between short sale and foreclosure. A short sale is when the lender agrees to take less than remaining loan balance.

In different situations the lender agrees for a short sale. If the lender sees that the borrower cannot pay off his loan and is in default already then he may agree for a short sale. Thus the lender can avoid the expenses of foreclosure.

Foreclosure is the worst thing and neither lender not buyers want foreclosure. Lenders don’t want foreclosure as this is a very expensive and time consuming process. If any buyer faces foreclosure then we all know that can hurt his credit score negatively and he may not be able to get a home loan in coming 5 to 7 years.

Foreclosure seems very insulting to some people and on above all that you are losing your dream home. In short sale you cannot protect your dream home but the short sale does not affect your credit score as bad as a foreclosure and if the lender agrees for the short sale then he will not even claim any deficiency judgment.

There are many other options to avoid foreclosure link Loan modification, Forbearance, Refinancing, Reinstatement or any easy repayment plan etc. short sale should be your last option to choose. If no options help you out then you can think about short sale.