- When a bank agrees to accept less than what’s owed on the loan when a property is sold, the transaction is considered a short sale.
- Short sales are less damaging to a homeowner’s credit report and credit score than a foreclosure.
- Short sales are less stressful and more comfortable than foreclosures because they allow homeowners to stay in the home until the sale is completed.
- While a seller typically pays all real estate agent commissions and other closing costs, in a short sale the bank covers these expenses.