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A short sale is when the homeowner sells their home for less than what they owe on their loan
and the lender accepts that sale price for the real estate as payment in full.
If the short sale is successful the homeowner takes a smaller hit on their credit report for
missed payments and the short sale and they cannot make any money on the sale of their home,
yet they are relieved to be out from under the debt.
The lender will sustain less costs that would have been incurred in a foreclosure process.