Home Decor | Housing | Real Estate

Short sales homes can be a saving grace for borrowers facing foreclosure. The process involves selling the property short of what is owed on the mortgage note. When borrowers become delinquent with their payments and do not possess the financial means to become current, some lenders will grant short sale approval to prevent the property from falling into foreclosure.

Short sales homes are sold below the appraised value and proceeds are used to satisfy the debt. Obtaining short sale approval requires borrowers to undergo a financial audit through their mortgage lender and locate a qualified buyer to purchase the property.

Borrowers must work with an assigned loss mitigator. This individual is generally employed by the bank to develop a plan to either cure mortgage arrearages and help borrowers become current with payments, or short sell the property within a specific timeframe.

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