What is a Short Sale?

A short sale is a short pay that the bank agrees to take less than what is owed so that you can sell your home.  Depending on what type of loan it is, they either will release you from the unforgiven portion or they may reserve their right to collect the difference after the close of escrow or in some cases they can ask you to sign a promissory note for the difference. The decision to Short sale should not be taken lightly.  There are several different options.  It is always best to gather the most information so you can make the best decision for your family. Consulting not only a Real Estate attorney, Bankruptcy attorney, CPA and a qualified, experienced Realtor before making your decision. A foreclosure on your credit can last for 7 years. Where as with a short sale as is in many cases, you can buy again either a day after it closes or after 2 years, depending on the rest of your credit.  Instead of ruining your credit with a foreclosure you would be bruising your credit and have a fresh start.