All short sales have several things in common: 1) The property is to be sold for less than the amount the seller (borrower) owes on the loan and the lender (loan holder) agrees to take the loss; 2) Some kind of a hardship exists that forces the seller into this situation. The hardship must be acceptable to the lender.

This is a good way to keep a foreclosure off your credit record. Depending upon how the lender reports the sale to the credit reporting agency, it will generally show up as a “sale of real property,” or a “settlement.” It will not be reported as a “foreclosure.”

“Preforeclosure Sale” is the term used when the loan is FHA insured.

“VA Compromise” is the term used when the loan is VA insured.

“Short Sale” is the term used for conventional and other types of loans.

If you are in the position where you are, or soon will be, unable to pay your mortgage payments, one of these types of sales might be the answer. If you are not sure, call The GOLDEN Team at: (800) 930-4486 or e-mail us at goldens@goldenteam.com.