A. A short sale is basically a negotiated pre-foreclosure sale of a home by a homeowner facing foreclosure whose mortgage balance is more than the market value of the house.,

"To avoid the cost of foreclosure," mortgage lenders may agree to accept less than the mortgage balance due by permitting a homeowner to sell the home at market value."

When a lender allows a short sale, it may forgive the remaining debt, In other cases, as a condition of approving the short sale, the lender may require the homeowner to acknowledge the remaining debt and agree to repay it over time.

"A lender will only agree to a short sale if it is in its own best financial interest, that is why the have loss mitigation departments, they need to mitigate their losses..

A lender may reject a short sale for any of several reasons. The homeowner may not be able to demonstrate sufficient financial hardship to warrant a short sale, for example. Or the proposed net settlement may be unacceptable to the holder of the mortgage.

"Sometimes, a private mortgage insurer is responsible for the projected loss, "and the insurer dictates the terms under which a lender may accept or reject a short sale proposal."

This is why we recommend that you hire someone who know what they are doing. as not all home can be short sales, and the biggest misconception is you can save 30 to 40 percent by buying a short sale home.

Only homes that are reasonably price can and will sell.
The rest we will tell you in person.