Home Buying in 68124>Question Details

tmua, Home Buyer in Omaha, NE

What is a "short sale"?

Asked by tmua, Omaha, NE Tue Jun 12, 2012

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7
A short sale occurs when an owner has proven hardship to the lender and can sell for less than owed on his/her mortgage; the owner can accept whatever offer he/she wishes, but the lender decides to accept, reject or counter offer; short sales are by no means fast sales, much will depend on the number of liens involved, who is negotiating the sale for the owner, etc., therefore much patience is oftentimes necessary...
1 vote Thank Flag Link Tue Jun 12, 2012
I would describe a short sale as simply the bank agreeing to sell the home for less than the principal balance on the mortgage including any costs at closing.
1 vote Thank Flag Link Tue Jun 12, 2012
It means the sellers are upside down on their loan.
The amount they need to pay off the mortgage with the bank is more than they can get from the sale of their home.
1 vote Thank Flag Link Tue Jun 12, 2012
If you are considering a short sale make sure you hire an agent who does lots of them it is kind of a specialty service

aaron
0 votes Thank Flag Link Tue Oct 2, 2012
tuma,

A short sale is a sale price that is less that the amount that is owed to the lender on the mortgage. You have to be very patient if you write a contract on a short sale. Although Congress has passed a law that the lenders are supposed to answer the seller within in 30 days now that June 15 has passed. I wrote an offer on a short sale March 3 that we still do not have the answer back from the lender. If you need any help finding your new home I would love to help.
0 votes Thank Flag Link Wed Jun 13, 2012
I disagree with Jim - Short sales are closing regularly here in CA - Not sure what the challenges in KY, or NE might be...

As answered, a short sale is when a lender agrees to accept less than they are owed, thereby being paid 'short'. Restrictions do apply, but if you find that you may need to sell your home short, please contact a Realtor in your area who has a proven track record closing short sales.

Good Luck!

Kevin McLaughlin
Berkshire West Realty
0 votes Thank Flag Link Tue Jun 12, 2012
It is a cousin to the unicorn. Pretty rare when they actually close. If the seller has other assets or the income to pay the difference over time then the lender will probably not approve. Many sellers will not give up other assets willingly so more often than not they do not close.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Tue Jun 12, 2012
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