What’s a Short Sale in Real Estate? This FAQ Sheet Breaks Down the Basics

Every time you open your mailbox, you’ve got stacks of collection notices from every creditor. You’re behind on the mortgage with no way to catch up, and now you’re facing foreclosure. Soon, you’ll be out on the street with a big blot on your financial record. In the midst of these financial straits, there may be a slightly better option: a short sale. You’ll still have to sell the house and move out, but you’ll have more control over the situation and you’ll also put yourself in a better position to recover faster. But what is a short sale, and is it the right route for you? We’ve broken out the most common questions about short sales to help you make a more informed decision about your next steps. What is a short sale? How do I know if I qualify for a short sale? Short sale vs. foreclosure: What’s the difference? What documents do I need to apply for a short sale? How is my home’s current value determined during a short sale? Who pays closing costs in a short sale? How does a short sale affect my credit score? What are the tax considerations of a short sale? Can I hire any agent to handle my short sale? What are the alternatives to a short sale? Is a short sale right for me? Find...