A Short Sale is an agreement by which the lender agrees to accept a payoff amount that is less than what is actually owed on the mortgage loan. As such, the homeowner cannot receive any proceeds from the sale of the property and the lender will pay all the cost associated with the sale of the property, including the real estate commissions, escrow and title fees, as well as some of the buyer’s closing costs in some cases. In some situations, the lender will provide relocation assistance to the homeowner which is one of the main benefits listed below.
