Home Selling in Gurnee>Question Details

Michael V Pe…,  in Grayslake, IL

What is a short sale?

Asked by Michael V Peterson, Grayslake, IL Wed May 20, 2009

A short sale is when a home owner is upside down on their mortgage. They owe more than it is worth. Therefore, when the homeowner is having difficulty in making their mortgage the homeowner asks the bank to consider taking less then they owe. The owner is "short" in paying off the loan. If the bank agrees, this is called a short sale.

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And to think all this time I thought it was selling a low ceiling house to a midget. <oops>
0 votes Thank Flag Link Thu Dec 3, 2009
You've been given a good explanation from other agents answering this question. If a homeowner decided to go the short sale route, there are many different considerations to consider, and a complete packet will need to be completed by the homeowner, including a hardship letter. If you would like more information, we are planning on having a seminar on Short sales early in the new year..
0 votes Thank Flag Link Thu Dec 3, 2009
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 homeownerr. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. A short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure" Less impact on your credit score. All mortgage debt is fully discharged
0 votes Thank Flag Link Wed May 20, 2009
Normally a post is not answered after the question.
You might want to read the community guidelines.
Welcome to Trulia.
0 votes Thank Flag Link Wed May 20, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
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