Short Sales

Short sales are a very popular way to buy real estate in the market of today. A short sale is a real estate transaction, in which the sale of the property is less than what is owed on the loan. Such a transaction is rampant in bad economic conditions when a borrower is unable to make mortgage payments, but the lender chooses to sell the property at a loss rather than trying to collect from the borrower. The borrower is enticed into doing the short sale because it keeps them from foreclosure. Opting to do a short sale is better than a foreclosure because there are high fees associated with foreclosures, and foreclosures damage the borrowers credit.