It means the sellers want to close the transaction quickly. A short sale means that the lender will be getting less than what they are owed.

Tue Jan 29 2008, 14:15

Adela
For more information on short sales and foreclosures you might want to read my blog.
Depending upon the reason for your question, I'd like to make two points:
One is that just because a home sells quickly does not necessarily mean that it is selling for less than market price. A properly marketed home that sells during the first 30 days of market time will probably sell closer to asking price than one that is on the market 3 or 4 months. Market price is market price, meaning the market usually will not let a home sell for less than it's worth.

Second, that when a property is sold for less than is owed, depending upon the market, that may be the lender's preferred path. Lenders do not want to become real estate owners (REOs is another term for foreclsoures). They would rather help the owner stay in the home if possible (read my blog about that), or worst case have a short sale, rather than a foreclosure.

Tue Jan 29 2008, 12:22

Adela,
A quick sale is what the sellers are looking for. It means that the property isn't on the market for a long time. The buyer came forward and made an acceptable offer that the seller accepted and the deal is done quickly.
A short sale is when the property has to be sold and the amount of money that the market will pay for the property is less than the amount owed to the lender. The proceeds are "short" of what is owed.
Obviously the seller does not want a short sale but they are happening now because many people bought homes with loans with 100% financing and adjustable rates that were fixed for a period of time and the will adjust up. The buyers were hoping that the property would appreciate and they could refinance into a fixed mortgage. We are seeing apprecation slowing and the rates are adjusting so thnat the buyer can't afford to make the payments. If they can find a buyer and sell for what they paid they still need to pay taxes and brokerage fees so they will not be able to pay the full amount of the loan.
When that happens the seller needs to get the permission of the lender to accept the offer and pay off less than they owe. It takes longer to close this type of a transaction and the lender can also say no and force the seller into foreclosure.
Great question! While it was a quick question it's not something that can be explined with a short answer.

Tue Jan 29 2008, 12:11

Hi Adela,

To expand on what Gregory said, quick sales are just that: houses that are priced below comparables in the area to sell fast!

A short sale is when you are selling the home for more than you owe on it (e.g. you obtained a $200k mortgage, still owe $190k on it 5 years later, and sell it for $170k). Short sales are becoming much more common now.

With short sales there is a different process to follow when selling a home, as well as possible tax implications that need to discussed with your accountant or real estate attorney.

Tue Jan 29 2008, 11:24

Quick sales are quick and short sales short.

Quick sale is when the seller sells at a lower price, and a short sale is when the mortgage company reduces the note and you buy the note from them.

Tue Jan 29 2008, 10:58