If a homeowner owes more to their lender than the home is worth, the situation can seem pretty bleak - fortunately it’s not as rough as it sounds. A short sale is a possible way to negotiate with the lender for a solution that helps everyone out.
The process involves the seller or an agent selling the home to a buyer at market value, or a bit below market value. The lender agrees to accept the proceeds as payment in full on the mortgage - even if the sale price is actually less than what is currently owed on the property.
The major downside is that a lender is not required to negotiate or accept a discounted payoff, so there is no guarantee that your lender will let you pursue a short sale.
When Short Sales Process - Who Profits?
When you sell a…