Short Sale

Short Sale

A short sale is when you sell your home and the bank agrees to accept an amount that is less than the total amount due on the note and mortgage, hence the name “short sale.” Generally, with a short sale, you will be released from the debt as part of the deal. You always want to review the closing paperwork carefully to make sure you are being released from the debt. Sometimes, especially if it’s a smaller lender, they may try to get you to sign a promissory note for the difference between what is owed on the note and mortgage and what the lender is getting from the short sale. Do not sign that! You can list your property for a short sale even when you are in foreclosure, but you still need a competent defense attorney to litigate the case and get you the time you need for the short sale to be completed.