Boise Real Estate Forums | Boise Real Estate Soup http://boiserealestatesoup.com/boise-real-estate-forums/?group=2 Simple:Press Forum Version 4.2.0 Aaron Catt on What's A Short Sale? http://boiserealestatesoup.com/boise-real-estate-forums/short-sale-or-forclosure-or/whats-a-short-sale/#p38 Short Sale or Forclosure or ? http://boiserealestatesoup.com/boise-real-estate-forums/short-sale-or-forclosure-or/whats-a-short-sale/#p38 A short sale is a transaction that occurs when a homeowner owes more in his home that it is worth.  For instance:

  • Mr. Jones owns a home on 123 River Street
  • His loan is $250,000
  • Market value is $200,000
  • Mr. Jones is $50,000 upside down

In order for him to sell his home and pay off all of the debt to the bank, he must do one of a couple things:

  1. Bring $50,000 cash to closing.
  2. Sell other assets (if any) to bring $50,000 cash to closing
  3. Ask the bank for a BIG favor and have them lower their loan amount and forgive the $50,000

Number 3 is the basic definition of a short sale: Ask the bank for a BIG favor and have them lower the loan amount on a home and release the lien so the home can be sold.

If you have further questions about short sales,  please ask.  Thanks!

Here are some related short sale links:

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