A Short Sale transaction occurs when market and financial conditions force a property owner to sell their property for less than what is owed on the mortgage and the lender is willing to accept less than full amount as payment in full.

Although it sounds like the perfect out, your decision to enter into a short sale transaction should not be made lightly. The best strategy under any conditions is to continue paying your mortgage, wait for the market to correct, let your property appreciate and sell your house when the value has returned.

Losing your home to foreclosure due to an inability to pay your monthly mortgage payments is one of life’s most unpleasant experiences. However, occurrences such as serious illness, a major accident, and divorce or job loss can happen to anyone. If you find yourself in this situation, a Short Sale could be your best option.

The inevitable result of a foreclosure is the lender taking your home. Not only will you lose your home, but the lender can get a judgment against you for the arrearages you owe plus his cost for the foreclosure action. If that isn’t enough, your credit report will be in terminal condition for many years to come, worsening an already bad financial situation and making it very difficult to obtain any other kind of credit. There is no upside to foreclosure. It should be avoided at all costs.