A Short Sale occurs when a property is sold for less than the amount owed on the Mortgage and the Lender agrees to accept that amount as satisfaction of the Mortgage still owed. It is important to note that two things have to occur to qualify for a Short Sale:
- the home must be under contract with a buyer and
- the Lender must accept that discounted payoff amount
The objective of a Short Sale is to obtain written confirmation of the recordation of Release of Satisfaction of Mortgage from the mortgage Lender upon receipt of the funds.