Why might a seller agree to a "Short Sale"?

A seller might agree to a "Short Sale" primarily to sell the property before foreclosure occurs. In a short sale, the lender allows the property to be sold for less than the amount owed on the mortgage. This option can be preferable for the seller as it tends to minimize the long-term negative impact of a foreclosure on their credit score. By choosing a short sale, the seller can proactively address their financial situation and relieve the burden of an underwater mortgage, effectively preventing the more drastic consequences associated with foreclosure.

The motivation behind this choice is not just about selling the home itself, but also about the timing; acting before a foreclosure may offer the seller a more favorable outcome. It helps maintain a degree of control over the sale process, rather than facing the full repercussions of foreclosure, which can often lead to a lengthy legal process and significant financial repercussions.