Colin's home declines substantially in value.Colin gets his lender's permission to sell his home for less than the balance due on his mortgage loan.Colin still owes the balance of his debt to his lender.This is

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Colin's situation describes a short sale, which is when a homeowner sells their property for less than the outstanding balance on their mortgage with the lender's approval. The remaining debt is typically forgiven by the lender. Forbearance is a temporary agreement with a lender to lower or pause mortgage payments, foreclosure is when a lender takes legal action to seize a property, and a deed in lieu of foreclosure is when a homeowner voluntarily transfers ownership of their property to the lender to avoid foreclosure.

Colin's Home Declines Substantially in Value