What is the definition of short sale foreclosure?


Quick Answer

A short sale is a pre-foreclosure sale that takes place when a home is sold for less than the amount owed on the mortgage. The mortgage company agrees to allow the homeowner to sell the home and pay off the mortgage balance.

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Full Answer

To consider a short sale foreclosure, the homeowner must not be eligible for refinancing the mortgage loan. A long-term hardship and being behind on payments are also situations in which a short sale becomes an option.

A short sale does not have the same negative impacts that a foreclosure would have on the ability of the homeowner to purchase another home in the future.

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