Question:

What is short sale of a house?

Answer:

A short sale of a house occurs when the lender agrees to take sale proceeds to satisfy a mortgage debt. Even though the short sale won't pay off the debt in full, the lender may agree to waive the remaining debt balance. If they don't, be ready for a deficiency judgment.

How to approach short sale of a house?

Call the lender, more specifically the short sale responsible. Provide an extensive report on the amount you owe, a hardship letter describing your unfortunate circumstances, enclose evidence of your financial collapse, and a house appraisal value. When a buyer shows, up, the lender will want to examine the items on the offer and make sure you are not getting additional funds from the transaction.

If the lender approves the short sale, they may be even willing not to send a damaging report to the CRCs. Have in mind that there is no guarantee the lender will grant this request.

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