Another route people will sometimes take when facing foreclosure is doing a “short sale”. A short sale means that you sell your house for the current market value which is less than you owe on the house and you get your lender to agree to it and take the lesser amount.
Often people facing foreclosure will consult a realtor, perhaps the very one who sold them the home they are living in, and the realtor will recommend a short sale.
Realtors usually recommend short sales for two reasons:
1) That’s what they know;
2) And they make a commission when they short sell your house!
However, what they don’t often say is that they are severe consequences to short selling your home:
