What is a short sale in real estate?

  1. Niicks profile image74
    Niicksposted 6 years ago

    What is a short sale in real estate?

  2. flacoinohio profile image81
    flacoinohioposted 6 years ago

    A short sale is an alternative to a foreclosure.  The seller will sell a home for less than what is owed by a lienholder.  Seller is then responsible for the remaining balance called a deficiency.  A short sale does have a negative impact on a credit score.  Sometimes an owner can pay the negative balance, but most people opt to pay the deficiency in payments.  I would not recommend a short sale, but many people take this option to prevent a foreclosure which may have a much higher impact on a credit score.

 
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