Short Sale: A Way Around Foreclosure

It’s not always a win scenario when a lender forecloses a mortgage. There are always the high costs associated with foreclosure and more often than not, lenders themselves don’t want a foreclosure more than the owner. In a short sale however, if the lender approves for a proposed sale a debtor can sell the mortgaged property for less than the outstanding amount he owes. The proceeds will then be given to the lender as a discounted payment for the debtor’s loan.Both the debtor and the lender benefit from a short sale. The lender avoids the high costs associated with foreclosure and, the debtor on the other hand, eliminates his debts and a foreclosure record on his credit history report. With all the financial hardships nowadays, a short sale is a great alternative to foreclosure.