What is a Short Sale? A short sale is a sales transaction where the seller's mortgage lender agrees to accept a payoff less than the loan balance due. It may involve or not involve a property that is in foreclosure. Short sales generally occur in a soft real estate market . However not being able to pay the loan is generally the main reason. It's important when a seller enters into a short sale contract that they include a contingency clause allowing the seller to back out should the lender not approve the short sale. Another issue to address is whether the seller can present other offers to the lender and whether a buyer may cancel the contract during the short sale process. Short Sales can implicate credit and tax issues. A seller considering performing a short sale should consult and attorney or accountant. Sometimes the tax implications can be so significant that it isn't in the best interest of the seller. Why A Foreclosure? Coming soon For more information call Gail 323/428-2864