Wikepedia explains it as follows...
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.Any unpaid balance owed to the creditors is known as a deficiency.Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
Allow me to simplify it a bit. If you owe more on your home then what it will sell for and you have a hardship, you may be able to short sell your home. There are very strict guide lines that define what a hardship is. I will explain that further in another blog. Once you list your home and get a contract that both the buyer and seller agree with, it needs to be submitted to the bank that the current mortgage is held by. They review the offer and conduct various evaluations to determine whether the offer is acceptable to them. So what does this mean to you the purchaser?
A short sale is considered a distressed property and is usually sold at a deeper discount from market value then a traditional sale. So If you the buyer have patience and flexibility on when you settle, a short sale could be the perfect fit. Most all short sales are sold "as is" so do not expect much to be done to the property after contract. However, every bank is different. Some may be willing to do some repairs.
There are currently 126 short sales listed in Harford county. There are several areas of Harford County that have short sales available. There are 29 short sales listed in Edgewood MD according to the multiple list. There are 18 short sales listed in Bel Air Md. There are many areas of Harford County that have short sales listed for sale. Some of these areas include but are not limited to Abingdon, Aberdeen, Fallston and Forest Hill to name a few.
In conclusion, Short sales can be a win win for all parties involved. The buyer gets a good deal, the seller gets out of their house and the bank avoids the expense of foreclosure proceedings. Please contact me for more information about short sales both listing and purchasing them.
Paul Gillespie - C.D.P.E. - Realtor - Exit Preferred Realty. Helping families find houses for them to call home! I work in Harford County and surrounding areas. 443-852-1632 / 410-670-9100