What is a short sale?

A short sale is a real estate transaction in which a homeowner sells their property for less than the amount owed on their mortgage. It is an alternative to foreclosure and is typically used when the owner is in financial distress and unable to keep up with mortgage payments. In a short sale, the lender agrees to accept less than the full amount owed, allowing the homeowner to avoid foreclosure and potentially eliminate or reduce their remaining debt. The process involves negotiating with the lender, listing the property for sale, and finding a qualified buyer. Short sales require extensive documentation and can be complex, often requiring the assistance of a specialized real estate agent or short sale specialist.