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Is a short sale the same thing as a foreclosure?

The threat of foreclosure can loom large over the lives of Tennessee residents. That is because if a foreclosure goes through a family may lose its home as the residence is returned to the lender that secured the family's mortgage on the property. Foreclosures can occur after individuals fail to keep up with their mortgage payments and fail to take action when notices of foreclosure begin to arrive.

People who cannot pay their mortgages may have options for avoiding the foreclosure process. They may be able to talk to their lenders about changing their payment schedules to accommodate their compliance with them. They may also look into the short sale process to sell off their property before it becomes subject to foreclosure.

A short sale is the sale of a property in anticipation of a possible foreclosure. When a home is sold the proceeds are given to the lender that holds the loan on the property to release the mortgage holder from their obligation. The proceeds of the sale may be enough to release the debtor from their mortgage obligation.

However, it is an unfortunate fact that in many cases a home may sell for less money than what the mortgage holder owes on their loan. In such a case a debtor must work with its lender to secure the latter's agreement to take less than what is owed on the loan in satisfaction of the mortgage holder's outstanding debt. This may or may not happen, depending upon how willing the lender is to work with their mortgage holder.

A short sale avoids the repossession of a home by selling it off before foreclosure may begin. A short sale is just one way a persona may avoid foreclosure. More debt relief options may be applicable to readers' situations and can be explored with the help of bankruptcy and debt relief attorneys.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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