Home Buying in Norman>Question Details

Elaine Sinko, Home Buyer in Germantown, TN

what is a "short sale"?

Asked by Elaine Sinko, Germantown, TN Sun Nov 3, 2013

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Answers

8
The owner is asking the bank to allow the owner to sell the home for less than is owed on the original note.
1 vote Thank Flag Link Tue Dec 3, 2013
The owner is not for filling their promise to pay for the note they used to purchase the property and now they are trying to sell it for less than they owe.
1 vote Thank Flag Link Tue Dec 3, 2013
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 Mon Nov 4, 2013
Hi Sinko

A short sale is when the bank agrees to accept less than what the homeowner currently owes on a property. For a bank to accept less than the full amount owed, the homeowner must prove some sort of financial hardship, i.e., loss of job, illness, reduced income, divorce, etc. While the homeowner still lists and sells the home, it is ultimately up to the bank to accept, deny or counter the final sales price and terms.

For more detailed information on short sales, I would suggest contacting an agent in your area who is familiar with the process.

Best of luck to you,

Barbara Grandolfo
1 vote Thank Flag Link Sun Nov 3, 2013
Short sales lead to disappointment for many buyers, as the sale is sometimes approved initially by the mortgage holder and then approval is pulled when it gets close to closing. Short sales often take 3-6 months or more to close....!
0 votes Thank Flag Link Mon Dec 2, 2013
Simply put when a seller owes more then the house is worth, they can go to their bank and seek an approval to sell for current market value where the bank either forgives the balance or the seller must agree to pay the balance off later.
0 votes Thank Flag Link Mon Nov 4, 2013
The person who agreed to pay the bank X amount of dollars, for the loan, is trying to sell the home for less than the X amount of dollars and asking the bank to forgive the difference.
0 votes Thank Flag Link Mon Nov 4, 2013
A short sale is when a property is listed for sale for less than what the homeowners owe. If the homeowners are past due on their payments a bank may agree to take less than what is owed. This process is usually very time intensive.
0 votes Thank Flag Link Sun Nov 3, 2013
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