
A short sale (pay-off or short pay) is a process where the Lender accepts to take a discount on the existing loan amount owed on your property.
In exchange the house is sold to a third party and the home is not put into foreclosure.
This is beneficial to the lenders because foreclosures are costly and time consuming.
It is beneficial to the property owner as well, as this will enable them to sell the property, subsequently relieving a major distress situation and avoid a foreclosure on their credit. 
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