What is the usual outcome of a short sale for the seller?

The usual outcome of a short sale for the seller is relief from foreclosure. In a short sale, the seller is allowed to sell their property for less than the amount owed on the mortgage, with the lender's approval. This process typically occurs when the seller is facing financial distress and cannot keep up with mortgage payments. By agreeing to a short sale, the lender can avoid the lengthy and costly foreclosure process, while the seller can relieve themselves of the burden of an unaffordable mortgage, thus preventing a foreclosure from occurring on their credit history.

The approval of a short sale is often a more favorable option for all parties involved compared to foreclosure. The seller avoids the severe consequences of foreclosure, such as a significant negative impact on their credit score for many years and difficulty in obtaining future financing. Additionally, through a short sale, sellers often have the opportunity to negotiate with their lender for a potential release from any remaining debt after the sale, although this can vary in practice.

In contrast, a profit on sale, a requirement to pay the remaining balance, or a loss of the property do not accurately reflect the usual outcomes associated with a short sale, as these scenarios describe different circumstances or results that are essentially mitigated by the nature of the short sale itself