Short Sale
Real estateGlossary term
Definition
Selling a home for less than the mortgage balance with lender approval. Alternative to foreclosure but still negatively impacts credit score. Lender may forgive the difference.
Related terms
- ForeclosureA legal process where a lender takes ownership of a property when the borrower fails to make mortgage payments. Can severely damage credit and result in losing the home.
- MortgageA loan used to purchase real estate where the property serves as collateral. The borrower makes regular payments over a set term (typically 15-30 years) until the loan is paid off.
- Credit ScoreA numerical representation (typically 300-850) of your creditworthiness based on your credit history. Higher scores indicate lower credit risk and can lead to better loan terms.
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