Short Sale

A short sale is a sales transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan. This is a useful tool for lender and homeowners when foreclosure could be a worst-case scenario. In some places when a home enters foreclosure, legally the property still belongs to the person who has the loan on the property; usually a period of time from 30 to 90 days will pass, while the property is in foreclosure, before the property will be auctioned off at the court house. Once the home is auctioned off, you must vacate the property, usually within 24 hours of the auction.