Are you wondering how does short sale work?

There are a lot of ways to lose a home but signing away ownership in a manner that destroys credit, humiliates the family and strips an owner of dignity is one of the hardest. For owners who can no longer afford to keep mortgage payments up to date, there are alternatives to bankruptcy or foreclosure proceedings. Short sale is one of those options.

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. However, not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales.

If you are considering buying a short sale, there could be drawbacks. For your protection consider these points:

* Obtain legal advice from a competent real estate lawyer
* Call an accountant to discuss short sale tax ramifications