A short sale occurs when a homeowner sells their property for less than the amount owed on their mortgage, with the lender's approval. The process is often pursued by homeowners who are facing financial hardship and want to avoid foreclosure. In a CA Short Sale, the lender agrees to accept a lower payoff from the sale of the home, effectively forgiving the difference. This option can be a less damaging alternative to foreclosure for the homeowner's credit score and can allow them to begin the recovery process sooner. However, it requires significant coordination with the lender and can be a lengthy endeavor.
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