There are not many "ways out", once you are in a tight spot as a home owner, who's going through some financial problems and finding it hard to reimburse the debt amount to his/her lender or mortgagee. Most of the times, you are left with no other options but to withdraw from your home ownership, either by means of foreclosure or "short sale". A short sale occurs when you sell your home (of course with the consent of the lender) to some buyer at a price that's less than the owed amount of debt. In case of a short sale, lenders keep the money, buyers get the home and the sellers are left with ... well, nothing but at least they can save themselves from dishonor and bad credit record that comes with foreclosures or bankruptcy.Mostly, three major stakeholders are involved in a short sale, namely seller, buyer and lender. Let's discuss the transaction one by one, from their standpoint.
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