Facing a foreclosure is a frustrating experience. You usually do not end up here unless you are having financial struggles. In this situation, you have a few options. If possible, you want to find the money to catch up on your mortgage payments and keep your home. However, if this is not an option, you may consider selling your home. If you cannot sell it for the amount you owe the lender, it is a short sale, according to The Street.
A short sale will get you a large portion of the money you owe your lender. You will need to have the lender in agreement with the sale, though. This is because the lender will not get all of its money back. If you are in a serious financial situation, though, where the only option is for the lender to start foreclosure proceedings, then your lender may be on board with a short sale that will allow it to recoup more money than it could through a foreclosure.
Furthermore, a short sale will reduce the hassle the lender will have to go through to settle the situation. You will usually receive an approval from your lender, but you should prepare for a denial. In some cases, the lender may feel the offer you get for the property is too low. You may need to try to find a buyer willing to pay more to get the approval from your lender.
Because you need to go through your lender to get approval for the sale, a short sale can take more time than a normal sale. However, it can be your best option to avoid a foreclosure on your credit report. This information is for education and is not legal advice.