A Short Sale is one of many alternatives that sellers have available to them.
If a seller is in trouble with a particular loan on a particular piece of property, the seller, depending on the seller's ability, can:
(1) reinstate their mortgage;
(2) arrange a loan workout or re-payment plan;
(3) pay off the loan in full;
(4) refinance the loan;
(5) allow a foreclosure to occur (do nothing);
(6) do a deed in lieu of foreclosure, or lastly;
(7) declare bankruptcy.
A Short Sale may or may not be the best deal for the seller or the buyer and the Realtorâ should always recommend a credit, legal, and/or financial advisor to help the Realtorâ's client evaluate the options available and to determine whether there are any other factors that may be positive or negative for their current circumstances. The ideal candidate for a Short Sale is still making loan payments and has a credit rating worth preserving.
