Posted by Jim IL on November 18, 2000 at 18:53:26:
A short sale is when the seller, and the lender who holds the note on the home agree to allow the home to be sold for less than what is owed on it.
The lender obviously has to agree to this, because they are taking a loss.
But, many times the lender will agree to a short sale rather than go thru a lengthy and sometimes costly foreclosure.
I do know that getting this done is not easy, especially with goverment insured loans.
But, it does happen sometimes.
You’ll have better luck with this technique if the note is not performing. (it is behind on payments.)