Short Selling Your Home

Short selling a house is when a homeowner sells their property for less than the amount they owe on their mortgage. This usually happens when the homeowner is facing financial hardship and cannot afford to keep up with their mortgage payments, or when the market value of the house has dropped significantly.

Short selling a house is an option for homeowners who are struggling financially and can no longer pay their mortgage. There are various situations that can lead to this scenario, such as losing income because of job loss, divorce, illness, or death; owing more on the mortgage than the house is worth due to market decline or interest rate changes; needing to move to another location because of work, military, or family obligations; or facing bankruptcy or foreclosure actions from the lender.

Short selling a house is a process that involves several steps. First, you need to contact your lender and request permission to do a short sale. Then, you need to find a buyer who is willing to pay less than what you owe on your mortgage. Next, you need to submit the buyer’s offer to your lender for approval. If your lender agrees, you can proceed with the sale and give the proceeds to your lender.

A short sale is a voluntary process where the homeowner sells the property for less than the amount owed on the mortgage, while foreclosure is an involuntary process where the lender takes possession of the property after the homeowner has failed to make mortgage payments. Short selling a home can be less damaging to your credit score than foreclosure, but both options have potential downsides.