Hello there I’m Matt Fetick with Sold by Short Sale. Philadelphia’s leading short sale specialist. Today we will be covering some of the basics of how a short sale works. The straight forward truth is that a short sale occurs when a homeowner must sell their home for less money than what they owe the bank. A lot of people today find that their home is worth considerably less than when they bought it, especially if it was purchased in the last five years. Other factors such as job loss, medical bills, re-location for work, or a drop in salary can also bring about a short sale. When a homeowner is unable to make payments or needs to sell their house because they are moving we can then list there house and start the short sale process. Once there is an offer for the house we ask your bank, the lender, to accept an amount that is less than what you owe on the mortgage. Because banks are in the business of lending money and not owning property they will consider a lesser offer if they feel they will end up owning the property through foreclosure anyway. Your lender may also be in favor of a short sale because it free’s them from legal obligations and upkeep on the house if it is foreclosed. If you would like more information on short sales and how they work for you please call or e-mail me. This is Matt Fetick your Philadelphia short sale specialist, thank you and have a great day.