Slipping toward foreclosure can lead to feelings of anxiety, depression and loss of self-esteem, but there are options available to help millions of homeowners rescue themselves from the brink. It is crucial to act before a foreclosure takes place, so moving quickly and working with an expert in the field is critical.
A homeowner is “short” when they owe an amount on the property that, when combined with closing costs and commissions, is higher than the current market value. A short sale occurs when a negotiation is entered with the homeowner’s mortgage company or companies to accept less than the full balance of the loan at closing. A buyer closes on the property and the property is sold “short”.