The short sale process is a method used by homeowners to help avoid foreclosure. Rather than simply waiting for the property to be repossessed, it may be possible to reach an arrangement with lenders (the primary mortgage provider and those that have a second charge or second lien) to sell the house for fair market value. The borrower will then be forgiven for the difference between the value of the mortgages/loans secured on it and the final sale price. This is considered a win-win situation for both parties as fair market value is achieved without the need for legal proceedings.

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