Short Sale--A Painful Process

Short sale is one of the choice when homeowners are facing foreclosure and are in default status. It can be considered as slightly less painful compared to the other choices which are more draconian. In short sale, a sale is neogitated with the lender where the property is not foreclosed, and a buyer is found who gives a reasonable offer to the lender for their approval. By its very nature, the process should be swift, expeditious, and less painful as homeowners miseries are not announced in a public way and also a homeowners can stay in his property. Again, the benefits of short sale are that the homeowners can stay without paying any rent and is safeguarded against all collection calls. Furthermore, a homeowner can also negotiate for not inheriting a deficiency judgement. Done right, no deficiency would follow, as the sword of Damocles can fall on other choices including short sale.

New York Time has recenlty published a very factual article on the miseries of short sale. http://www.nytimes.com/2009/12/13/realestate/13mort.html?_r=2&ref=realestate