In the American real estate sector, the percentage of home owners that resolve financial foreclosures through home short sales is greatly increasing. This is because home short sales have proven themselves as a great channel to walk out the door with a graceful, decent exit. Repossession of a home entails self-embarrassment, social stigma, and financial persecution in future transactions, so home owners will certainly do anything to avoid these consequences.

Home short sales can occur when the home owner has to sell his/her property in order to pay the lender the loan that he/she owes. It is called a “short” sale because the payment is “short” of the total amount that the home owner must give. For instance, if a home owner has a house that is worth 90,000 dollars, but has a loan due of 110,000 dollars, what he or she will do is to sell the property, give the 90,000 dollars to the real estate mortgage lender, and ask the lender to forgive the lacking 20,000.

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