Foreclosure
What Is Short Sale?
A short sale is when a lender agrees to let a homeowner sell the property for less than the amount owed on the mortgage. It requires lender approval and is often used to avoid foreclosure on an underwater home.
A short sale happens when a property is worth less than the mortgage balance — the home is 'underwater' — and the lender agrees to accept the sale proceeds as settlement even though they fall short of the full debt.
Short sales require the lender's cooperation and approval, which takes time and documentation of financial hardship. They're more complex than a standard sale but can prevent a full foreclosure.
A short sale typically does less damage to your credit than a foreclosure and may help you avoid a deficiency judgment if the lender agrees to waive the shortfall in writing.
Have a property you need to sell?
Diamond Home Buyers makes fair cash offers across Michigan, Tennessee & Florida — any condition, any situation. Close in as little as 7 days.