Short Sale vs Foreclosure

A short sale occurs when a homeowner sells their property for less than the total amount owed on their mortgage. This transaction requires lender approval, as the bank must agree to accept less than the outstanding loan balance. The rationale behind a short sale is that the homeowner is no longer able to make mortgage payments but wants to avoid the more severe consequences of a foreclosure.

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A short sale occurs when a homeowner sells their property for less than the total amount owed on their mortgage. This transaction requires lender appr...

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