A short sale describes a process between the lender and the seller. The lender(s) agrees to accept less than the full amount due on a mortgage. It does not describe the length of time that it takes to close.

In my experience working with short sales in the Tampa Bay Florida area on the selling and buyers side respectively the closing time can vary. They vary just as lenders do. Sometimes it can take two months. Sometimes it can take six months.

I highly suggest that anyone looking to purchase a home that is a short sale to consider that it may take awhile to close.

~ Lana Robbins

A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's Loss mitigation department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Most Short Sales leave a deficiency balance for which the Mortgagor / Borrower is still liable. In 99% of all cases it is not a settlement-in-full.

You can get some great deals, if you do not mind the wait. A short sale can take anywhere from 2 weeks up to 6 months to get final approval.

Hi..Naydine
A short sale is when the mortgage(s) owed on a home is greater than the value of the property i.e. the seller is "short" of funds. The banks can take weeks or even months to reply to an offer on a short sale home because they want to wait for the best offer. Always consult a Realtor.

A short sale can be a great way to build equity in a home up front. A short sale is subject to 3rd party approval, meaning the bank. Sometimes banks will agree to accept an offer that is less than the full payoff amount. They might want the home listed on the market until they feel they have received the best and highest offer and not accept the first offer that comes across their desk. If you have a specific time frame you want to move into a home, it will not work on a short sale. You work in the bank's timeframe.