What Is a Short Sale?

When financial circumstances make it difficult to keep a home, a short sale may be an option to consider as an alternative to foreclosure.

A short sale occurs when a home is sold for less than the amount owed on the mortgage and the mortgage lender or servicer agrees to accept the sale. Because the proceeds are not enough to fully satisfy the mortgage balance, approval from the appropriate lender or servicer—and potentially other lienholders—is generally required before the transaction can be completed.

Every homeowner’s situation is different. The lender or servicer determines whether a short sale will be approved, and questions involving any remaining mortgage balance, taxes, credit, or other financial consequences should be discussed with the appropriate mortgage, legal, or tax professional.

If you're facing a difficult situation with your home, The Ellen Baker Team is here to help you understand the real estate side of the short-sale process and discuss your options without pressure.