what is a short sale, short sale forms Homeowners aren’t the only people who mistake the difference between a short sale and a foreclosure. Even real estate agents sometimes ask, what is a short sale. The main difference is that when a foreclosure takes the place the lender takes back ownership of the property placing it in the real estate owned category. A short sale is anytime that a home is sold for less then what is still owed on the mortgage.

It’s easy to understand the reason for short sales in today’s market. Since there are more homes for sale then buyers and the average price of single families has dropped substantially many people who bought a few years ago are feeling the financial stress now, leading to short sales.

There are separate short sale forms and process differing from foreclosure. A homeowner interested in the short sale will talk to a broker who will negotiate with a lender about the price they are willing to take for a home. This number is always less then what is owed and in return, the homeowner sees a significant decrease in their credit score. Now you shouldn't have to ask what is a short sale.