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Short Sale

A short sale in real estate occurs when a homeowner sells their property for less than the amount owed on the mortgage. This typically happens when the homeowner is in financial distress and cannot keep up with mortgage payments. Here are some key points about short sales: Lender Approval: The lender must approve the short sale because they will be accepting less than the total amount owed on the loan12. Avoiding Foreclosure: Short sales are often pursued to avoid foreclosure, which can have more severe consequences for the homeowner’s credit score and financial future23. Process: The homeowner must provide proof of financial hardship to the lender. Once approved, the property is listed for sale, and any offers must be presented to the lender for approval12. Impact on Credit: While a short sale does affect the homeowner’s credit score, the impact is generally less severe than a foreclosure12. Buyer Benefits: For buyers, short sales can offer the opportunity to purchase properties at a discount, although the process can be lengthy and requires patience12