Glossary
Short Sale
Selling for less than is owed, with lender approval. An option when there's little or no equity.
In a short sale, the lender agrees to accept less than the full mortgage balance. The lender may forgive the deficiency (the amount still owed) or pursue it, depending on your state and the agreement. A short sale generally causes less long-term credit damage than a completed foreclosure.
Read more in the Field Guide:
- Foreclosure Options: What's Actually Available, Foreclosure
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