If you are dealing with threats of foreclosure, creditor harassment, or crippling debt, a short sale may be a good option for you. Unlike foreclosure, a short sale allows you as the owner to sell your own home and then give the proceeds to the lender. A foreclosure involves the bank or other creditor seizing your home without any thought to you. By definition, a short sale means that the amount the property is sold for will not be enough to cover the sum that is owed. However, the creditor will often forgive this deficiency as it means that they will get most of their money back.
A short sale can benefit both the debtor and the creditor. It involves less time, expense, and hassle to both parties. It gives the debtor a fresh start and it gives the lender a repayment that they may otherwise not have received. It also helps buyers and the housing market as they are able to purchase a home at a sometimes greatly reduced cost. More and more families in Florida are choosing the option of short sale. However, it is not the only way to be free from debt and there are pros and cons to consider