Hi Dave,
I think the other agents have given you a pretty clear answer. The only thing I would add is that in order for a short sale to occur, the seller needs to prove to the lender that he isn't holding any money in reserve to to pay the shortfall. If he has cash in the bank, a short sale will probably not be accepted - he'll have to kick in the balance making it for all intents and purposes a standard sale.
Cheers!
Aileen

Hi Dave,
If the Balance of the Loan is MORE than what the property is worth in the Current market, then yes if the Seller chose to sell it would be a short sale as no one will pay more than current market value..... Also, the Seller would need to meet certain Short-Sale criterias for the Lender to let the Sale go through and accept less than what they are owed...
Trust this helps.
Be well and safe, regards,
Nina Daruwalla

Dave,

You cannot determine that just by looking at the list price. Whether a sale is regular or short is determined by the seller's intentions.

A lender approved short sale (emphasis on lender approved) requires notifying the lender of the seller's intention to sell short. There are also forms that the seller has to sign acknowledging that it will be a short sale and any other junior lien holders must be notified as well and get their approval.

To determine more quickly whether a property is being sold short or not is to ask a Realtor. We can look up in the MLS whether a property is a normal sale or a short sale (listing agent must declare a short sale up front).

Hope that answers your question.

Steve Mun
408-802-5641 http://www.stevemungroup.com

Dave, If the proceeds of the sale will not pay off the existing mortgage it is by definition a short sale.
Bill

Short sale. A short sale is when the seller owes more than the house is worth. If you want a little more information you can go to my web site http://www.marcymoyer.com and click on the link Distressed Property Sales.
Marcy