A property needs a short sale when it is worth less then what is owed on the property. Simply said, if a property is worth 200k but the mortgage on it is 400k there are only 2 ways for the homeowner to sell their house.

The first way is for the homeowner to bring 200k to the table to sell the house for 200k, so that way they cover the difference in what is owed to the bank. This is usually very unlikely because homeowners don’t have that kind of money to lose. This being so the…