In real
estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the
balance owed on a loan secured by the property sold. In a
Brevard MLS short sale, the bank or
mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the
part of the mortgagor. This negotiation is all done through communication with a bank's loss
mitigation or workout department. The home owner/debtor sells the mortgaged property for less than
the outstanding balance of the loan, and turns over the proceeds of the sale to the lender,
sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would
have the right to approve or disapprove of a proposed sale. A
Brevard MLS short sale
typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale
is predicated on the most economic way for the bank to recover the amount owed on the property.
Often a bank will allow a short sale if they believe that it will result in a smaller financial loss
than foreclosing as there are carrying costs that are associated with a foreclosure.
source wikipedia