Deciding  to sell your home as a Short Sale or Foreclosure is an important consideration that most sellers never think about discussing with their mortgage lender and/or real estate agent.  Not sure why most sellers do not pursue a short sale in lieu of a foreclosure, especially if they have a desire of owning another home in the future.  So, with that said, here is a brief synopsis of the difference between the two.1)  In a short sale, the bank approves the sale of the property to a new buyer at a mutually agreed upon price.  Usually, this price is determined after a seller has requested a short sale package and started the short sale process. The bank will order an informal appraisal through an agent or appraiser called a Broker Price Opinion (BPO) to determine the new market value.  After the market value and terms of sale are determined by the bank, your agent can then list and market the property for sale.  Selling short may allow the unpaid balance of your loan(s) to be … [Read more...]