What is one reason a borrower would conduct a short sale?

A borrower would conduct a short sale primarily to sell the property for an amount less than what is owed on the mortgage. This typically occurs when the homeowner is facing financial difficulties and can no longer afford to make their mortgage payments. In a short sale, the lender agrees to accept less than the total amount owed on the mortgage, allowing the homeowner to sell the property and settle their debt without going through foreclosure.

This option is particularly important for borrowers who may be unable to keep their home but want to avoid the damaging consequences of a foreclosure on their credit score and financial future. Conducting a short sale can provide the borrower with a more manageable exit strategy from a challenging financial situation, making it a practical choice in circumstances where the home’s market value has declined significantly.