Recently, there has been a lot of talk about the Short Sale. Essentially, it's a process that allows a home owner to sell the property for less than he owes and have the bank to accept the proceeds as a payment in full.

During this process a bank agrees to discount a loan balance due to an economic hardship on the part of the home owner. The home owner sells the property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. The process is quite complex and the lender has the right to approve or disapprove of a proposed sale.

Why would a bank do it? First of all, it a business decision. A bank will often agree to a short sale if they believe that it will result in a smaller financial loss than going through the foreclosure.

For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure.

Call me, I'll be happy to explain the whole process.