What Is A Short Sale?
Some homeowners facing foreclosure negotiate a deal with their mortgage lender called a ‘short sale’. Under the terms of a short sale, a new buyer assumes the property and the lender forgives the leftover balance of the original mortgage. Things To Know: (1) Short sales are time intensive - in order to be successful the process must begin soon after the notice of foreclosure. (2) The homeowner is not allowed to rent the home back from the new buyer. (3) The seller may have to pay taxes on the amount of the mortgage that was forgiven by the lender. Benefit of A Short Sale: In certain circumstances it is preferable to preserve your credit history and pay a tax bill then to it is to lose your home to foreclosure.
Tags foreclosure : short sale : new jersey : mortgage
