mortgage short sale A mortgage short sale can literally save you from financial ruin. During the housing boom in the early 2000’s, many people saw their home’s equity skyrocket. Some took advantage of the extra money and cashed out their equity. Others sold their homes and purchased larger, more expensive homes.

Unfortunately, the housing boom didn’t last, and home prices took a nosedive. Now, many homeowners are stuck with an upside down mortgage, in which they owe more than their home is worth. This creates a problem. If unable to sell your home for the balanced owed, you’ll have to remain in the property, or convince your lender to consider a mortgage short sale. This provision allows a home owner to sell a home for less than the principle balance.

In the past, a mortgage short sale was practically unheard of. Nowadays, it’s become a common practice. In fact, it’s likely the only way to sell a house in some markets. Without a short sale, homes would sit on the market for months, maybe years.
Often times, a mortgage short sale is more beneficial than a foreclosure, which can be a long and costly process.