Will I owe any money after a short sale?

When engaging in a short sale, whether or not you will owe money afterward largely depends on several factors, including your lender's policies and the terms agreed upon during the sale process. A short sale occurs when a property is sold for less than the amount owed on the mortgage, and typically, the lender must agree to accept the discounted amount as payment in full for the loan. In many cases, lenders may require the seller to sign a promissory note, agreeing to pay back the remaining balance after the sale. This is more common if there is a significant difference between the sale price and the outstanding mortgage balance. However, some lenders might agree to release you from any further liability, meaning you would not owe any additional money after the short sale. It is essential to have a clear understanding of the terms set forth by the lender. Consulting with an expert in short sales, such as those at Short Sale Solutions, LLC, can provide valuable insights tailored to your specific situation. You might also want to explore the resources available on their website for additional information on this important topic.