The current economic climate has given us some new words and short sales is one of them. A short sale is a precursor to foreclosure and occurs when a homeowner can no longer afford to pay their mortgage. Before the lender forecloses, or takes the house back they will often allow the homeowner to try to sell the home. If the owner cannot sell the house for the amount that they owe then a short sale may occur.
Real estates' value is established two ways; by what a buyer will pay and from an independent evaluation by an appraiser. The bank then decides if they are willing to sell the property for less than the original homeowner owes.
This type ofÂ transaction takes time, sometimes months. If you are needing to move into a home on a specific date then this is not a good transaction for you, banks move at their own speed.
Mary Beth Harrison, www.dallastexasrealestateblog.com