When home owners are pushed into the brink of home foreclosure, bankruptcy, and disgusting credit scores, one of the acts that they can do to save their name and dignity is to undergo a mortgage short sale. In a mortgage short sale, home owners sell their house and use the payment to fulfill their dues to the mortgage lender. In this set-up, home owners ask the lender to receive payment smaller than what they really owe.

For example, if home owners have a debt of 50,000 USD, but they can just sell their property for only 40,000 USD, they can ask the lender to receive the 40,000 USD and forgive the 10,000. The graceful exit that Mortgage Short Sale provides does not mean that the home owners wont face any consequence in the future. Even if they didn’t reach the state of foreclosure, their credit scores will still be slightly affected.

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Homeowners have many reasons for missing a house payment, such as job loss, medical emergency, family death, divorce, and excessive repair bills to name a few. Some of these can be short-term problems that are easily resolved by making up the payment over a couple of months (with the consent of the mortgage holder of course); but in instances where the loss of income continues over several months, catching up becomes an impossible task.

One way to stop foreclosure is to educate homeowners on the importance of 1) making those payments, and 2) communicating with their mortgage holder in the event that they can’t make the payments. Most lenders can be sympathetic to a homeowner’s situation, but only if they are made aware of them.

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