Today, with foreclosures on the rise, many individuals are turning to short sales. The major problem with short sales is that you are not going to get any money for your home. This type of sale is more a less a way to please your lending company and save your credit. In most cases, you are already behind in your mortgage payment and foreclosure is just around the corner. You contact a realtor and learn that your home will more than likely not sell for enough to cover your loan therefore you are still going to be in trouble with the lending company. On the other hand, the lending company does not want your home. They are not in the real estate business; they are in the business to loan money. If they foreclose they have homes to sell.

What happens during a short sale is that the lending company agrees to accept the money that you receive for your home and call the loan paid off. The only thing you receive from the sale is that you no longer owe money to the lending company, but you also do not have a home. Before going through with a short sale you should talk it over with a realtor and an attorney.