Compromised Sale

  • Short Sale
    If sale of the property at current fair market value would result in proceeds less than the total debt outstanding.
    Property is listed for sale at “as is” appraised value.
    The servicer agree to accept the proceeds of the sale in satisfaction of the mortgage loan.
    Borrowers may be asked to make a cash contribution or sign an interest-free promissory note for the all or part of the difference between the proceeds from the sale of the property and the amount owed on the mortgage.
    - Benefit
    Borrower avoids the stigma and tax liability of a foreclosure.