What is a Cooperative Short Sale?

A Cooperative Short Sale, CSS, is a new initiative for lenders to cooperate with borrowers to sell their property in lieu of foreclosure.  Typically, if the home is a primary residence and the borrower does not qualify for a loan modification, the lender will offer a Cooperative Short Sale.  Typically, a Cooperative Short sale saves a borrower from foreclosure, allows them to stay in the property while it is being sold, saves them from foreclosure and compensates the seller for moving costs.  The lender (s) and borrower (seller) agree to a sale price allowing the property to be sold like a traditional sale without the unknowns of a typical short sale.