Tuesday, April 8, 2008

Short Sales Becoming Prevalent

More and more sellers are turning to short sales as a way to avoid foreclosures. In a short sale, a home owner sells their property for less than the outstanding balance of the loan and the lender agrees to release the lien. The effect of a short sale on a seller's credit report is identical to that of a foreclosure. In addition, a lender has sole discretion whether to pursue a deficiency judgment. Some estimate that short sales now account for 20% of all U.S. home sales.

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