A Short Sale is when you sell your home for less than what you owe on your home mortgage. For example, let’s say you owe $350,000 on your current home loan and your home is worth $150,000. The Bowers Team would list the home for current market value of $150,000 and work with your bank to get acceptance of a short payoff. Since it is a short payoff is the reason they call the process a short sale.
Now why would the bank agree to take less than what you owe them. Two options the bank has if your not paying your payments is to foreclose or accept a short sale. It is usually better for the bank to accept/approve the short sale than to take the home back as a foreclosure.