What is Short Sale

What is Short Sale

In the financial market the short sale is a most commonly used word or phrase in case of property selling. Basically when you are going to sale your property for less than the due on your mortgage, it is called the short sale of the mortgage property. Where the mortgage value is is greater than the sale value or the market price of the mortgage house which is the sale of property on short sale. Nowadays the short sale is became the regular news of every business dallies and magazines. There are some details of short sale option for the homeowners.

Whenever the homeowners are defaulted their mortgage loan and facing problem to get out from the trap of foreclosure and bankruptcy, they remember this short sale option for getting out of the foreclosure and bankruptcy. Nowadays with the financial market crash the homeowners are getting behind to pay their mortgage payments and getting ready to make short sale of their property to clear off the unpaid debts but the discrepancy still remains over the head of the homeowners.

As per the federal law of states the lender have right to collect his deficiency as per deficiency judgment law. The short sale and the deficiency judgment is the total procedure of clearing the default mortgage loan as per law. With the both party consideration for the short sale the property sale on short price from the market price only when the homeowner unable to clear the mortgage loan due to his hardship.

There are some specialize real estate agent who are the expert of the short sale. This sale of the property with lower price of the property can possible only when the lender agreed to receive short payment for his mortgage loan by the short sale of the property to the ready third party or willing new owner.

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