A short sale is simply when a home is sold for less than the total of loans on the home. It is often used as an “alternative to foreclosure” but is actually much more. There are many reasons homeowners may want to consider a short sale:
- Death of one borrower
- Needing to relocate immediately
- Loss of income/reduction of income
- Payment increase or mortgage rate adjustment
- Too much debt
- And, of course, one we’ve all experienced, a decline in home value.