Short Sale
A short sale is an option where you sell your home short of its value and is typically used to prevent a home foreclosure. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. This will allow the home owner to avoid of a foreclosure on their credit. A short sale is usually quicker and less expensive than a foreclosure. A short sale is nothing more than negotiating with the bank a payment for less than what they are owed, short of the full debt amount. It does not remove the remaining balance and can have an adverse effect on your credit.