Short Sales - Are They Worth the Risk?

February 3, 2010

If an owner buys a house for $500,000 and then needs to sell it but the market says it’s now only worth $400,000, they are short $100,000. The seller is still the legal owner of the house and can accept a contract on the house for the $400,000 but they still owe the bank that payoff amount of $500,000