What is a short sale?
A short sale is a transaction in which the lender, or lenders, agree to = accept less than the mortgage amount owed by the current homeowner. In some= cases, the difference is forgiven by the lender, and in others the homeown= er must make arrangements with the lender to settle the remainder of the de= bt.
Why is the number of short sales rising?
Due to the recent economic crisis, including rising unemployment, and dr= ops in home prices in communities across the nation, the number of short sa= les is increasing. Since a short sale generally costs the lender less than = a foreclosure, it can be a viable way for a lender to minimize its losses.<= /p>
A short sale can also be the best option for a homeowners who are =93ups= ide down=94 on mortgages because a short sale may not hurt their credit his= tory as much as a foreclosure. As a result, homeowners may qualify for anot= her mortgage sooner once they get back on their feet financially.
In 2009, the Treasury Department introduced the HAFA program to provide = a viable option for homeowners who are unable to keep their homes through t= he existing Home Affordable Modification Program (HAMP). The HAFA program t= ook effect on April 5, 2010 and sunsets on December 31, 2012.
http://www.makingho= meaffordable.gov/get-assistance/contact-mortgage/Pages/default.aspx
<a data-cke-saved-href="3D" href="3D"http://www.realtor.org/wps/wcm/connect/RO-Content/ro/research=" economists_outlook="" commentaries="" ehs1209"="">Economists' Commentary: Exist= ing-Home Sales, November
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