Short Sale Process Explained

A short sale occurs when a lender agrees to accept less than the full mortgage balance owed by the homeowner through the sale of the property. It's an alternative to foreclosure.

Key Steps:

1. Hardship Documentation: You'll need to prove financial hardship to your lender (e.g., job loss, medical bills).
2. Lender Approval: The lender must agree to the short sale; this is not guaranteed.
3. Listing the Property: Work with a real estate agent experienced in short sales.
4. Offer Submission: Submit buyer offers to the lender for review and approval. This step can take time.
5. Closing: Once approved, the sale proceeds like a traditional sale, but the lender receives the funds.

While a short sale negatively impacts credit less than a foreclosure, it's still a significant event. Consult with professionals for guidance.