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Short Sale |
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What exactly is a short sale ? Does the lender have to approve of it? |
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A short sale is much better on your credit record than a foreclosure, and you're lucky if a lender agrees to this way out of a problem.
If you can't sell the property for enough to pay off the mortgage, the lender agrees to take whatever you do get and cancel the rest of the loan.
Some lenders will do this only if you can prove you don't have any other assets to make up the shortfall and are just about penniless. But these days, with so many foreclosure problems, more lenders are willing to consider the matter.
Yes, the lender would reserve the right to look over the contract when you do find a buyer, and would have to approve the proposed sale price. |
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Edith
Originally published on April 10, 2008 |
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