Common use of Short Sale Clause in Contracts

Short Sale. A short sale (Short Sale) is a transaction in which a Lienholder releases its Lien against Property and (1) accepts an amount less than the full amount a Lienholder claims is owed or (2) treats the debt secured by a Lien differently than as originally provided for in the evidence of debt (such as a promissory note). Before a Short Sale can occur, Buyer, Seller, and Lienholder (except those creditors that are to be paid the full amount claimed) must consent to the terms of the sale. Sometimes, Lien is released but Lienholder does not agree to release Seller from liability or reduce the unpaid portion of the debt, and Seller and any guarantors will remain liable after closing for that unpaid portion, despite the release of Lien against Property at closing.

Short Sale. A short sale (Short Sale) is a transaction in which a Lienholder releases its Lien against Property and (1) accepts an amount less than the full amount a Lienholder claims is owed or (2) treats the debt secured by a Lien differently than as originally provided for in the evidence of debt (such as a promissory note). Before a Short Sale can occur, Buyer, Seller, and Lienholder (except those creditors that are to be paid the full amount claimed) must consent to the terms of the sale. Sometimes, Lien Xxxx is released but Lienholder Xxxxxxxxxx does not agree to release Seller from liability or reduce the unpaid portion of the debt, and Seller and any guarantors will remain liable after closing for that unpaid portion, despite the release of Lien against Property at closing.