Mortgage short sale

Mortgage short sale,

Definition of Mortgage short sale:

  1. A mortgage short sale is also known as a pre-foreclosure sale. During a short sale, the borrowers sell their home for less than the balance remaining on their mortgage. If the mortgage company agrees to the short sale, the borrowers can sell their homes and use the proceeds to pay off all, or at least a portion of, the mortgage. Short selling a home can cause the borrowers' credit to take a hit. This could potentially prevent those individuals from getting another home loan for several years. .

  2. A mortgage short sale is the sale of a property by a financially distressed borrower for less than the outstanding mortgage balance due where the proceeds from the sale will be used to repay the lender. The lender then accepts the less-than-full repayment of the mortgage (and the borrower is released from the mortgage obligation) in order to avoid what would amount to larger losses for the lender if it were to foreclose on the mortgage.

  3. A process where borrowers sell their properties at a price lower than than their mortgage balance upon the approval of their lender. This is done in order to relinquish difficult mortgage deal that is causing them financial distress as it allows them to pay their lender and avoid foreclosure on their mortgage.

Meaning of Mortgage short sale & Mortgage short sale Definition