In a short sale real estate transaction, a homeowner sells a property for a price that is less than the actual mortgaged amount. To facilitate such a deal, the homeowner gets in touch with their bank or mortgage company and requests a discount on the due amount.

Although these are not the ideal conditions for selling a home, it prevents foreclosure and even bankruptcy for some homeowners. In today’s economy, short sales have become very popular, as many homeowners are “upside down” or “underwater” on their mortgages. Continue reading →