Obama Announces Foreclosure Alternative Program (FAP) to devise financial incentives and a uniform process for Short Sales

Click FAP link for further details

What is a Short Sale?

A Short Sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagee (homeowner).

Extenuating circumstances delegate whether or not banks will discount a loan balance.  These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.

A Short Sale typically is executed to prevent a home Foreclosure.  Often a bank will choose to allow a Short Sale if they believe that it will result in a smaller financial loss than foreclosing.