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A Short Sale is a Real Estate Sale where the homeowner owes the lender more than what the property is worth. In a short sale the Bank must approve and accept less than the owed amount as Full and Final Pay-Off.
Loan Amount: $200K
Home Value: $100K
Find someone to purchase your home via short sale and the extra 100K in loan amount will be removed and in most cases totally forgiven by the bank. This allows you to move forward without having a bad asset holding you back. You must understand that you will be forced to move out of your home and find a new one. Many people who have done a short sale rent for 18-36 months until their credit has been rebuilt.