The Real Estate Encyclopedia
What is a short sale?
Category - Home Selling Questions - General Home Selling FAQ's
A short sale is when there is not enough equity in the house to cover the mortgage that is due. In other words, you're short on cash. A couple of things can happen. First, the mortgage company may allow the seller to close on the home but still owe the difference after closing. The good news is the lien against the property will be removed. The bad news is the debt is still owed. Secondly, the mortgage company may simply remove the lien and forgive the debt. Finally, the mortgage company may demand the payment in full before they remove the lien. In other words, unless the seller brings the necessary funds to closing clear title can't be transferred and the closing will not continue.


References


External Links
www.affordablelistings.com
 
 
Category(s)
Home Buying Questions - General Home Buying FAQ's
Home Selling Questions - General Home Selling FAQ's
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