Many people are familiar with the short sale process. Just to provide a little context, the US was doing great and houses were tripling in value in a short period of time. But as you know, what comes up, must come down. Those values were over inflated, and people literally thought that the values would keep climbing. Those that bought at the top of the market and currently have that same home has experienced a significant drop in value. So much so that oftentimes, in the eyes of the home owner, it doesn’t make sense to keep the home because they don’t see where the home can rise in value fast enough to recoup the drop in value. That is why many homeowners face the option of going though the short sale process.
The short sale process is simply getting permission from the bank to sell your home and for the bank to take less than what is owed on the home. Although this is a real option and for many a viable option, make sure you have a licensed attorney negotiate the short sale for you and make sure you understand the legal ramifications on what it can do to your credit and future ability to purchase another house. More often than not, people will look at other alternatives such as restructuring their debt in lieu of going through the short sale process.