Foreclosure in San Francisco>Question Details

Adela Picar, Real Estate Pro in San Francisco, CA

What is the difference between a quick sale and a short sale?

Asked by Adela Picar, San Francisco, CA Tue Jan 29, 2008

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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.
Web Reference: http://www.jedlane.com
6 votes Thank Flag Link Tue Jan 29, 2008
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
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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.
2 votes Thank Flag Link Tue Jan 29, 2008
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.
2 votes Thank Flag Link Tue Jan 29, 2008
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.
1 vote Thank Flag Link Tue Jan 29, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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I'm trying to get my payments lowered thru my mortgage co. because my husband has retired and our income has destactly changed. So i want to save my home but i need my payment lowered to at least $800.00 a month from $1265.72 a month. My home is upsidedown by $42000. and we still owe about $293000. So wht do you suggest we do? I want to save my home.
0 votes Thank Flag Link Fri Nov 15, 2013
can i refinance with no equity
0 votes Thank Flag Link Mon Aug 5, 2013
do you have to pay the bank the difference from a short sale?
0 votes Thank Flag Link Mon Aug 5, 2013
sometimes, yes. There is a recourse and a non recourse short sale. some banks will forgive the debt and some will ask the seller to sign a note for all or a portion of the amount they are short.
Flag Mon Aug 5, 2013
I won't purport to be an expert on this, however I will point you to an expert. A hard money lender. These guys put their own money on the line. You think they might know what a quick sale is?

Before we go there, let me tell you of my own thoughts which come from having talked to dozens - if not hundreds - of mortgage bankers, investment bankers and investors - people that walk the walk - over the last 10+ years. A quick sale is about 50% of market value, because that's what it usually takes to make that sale fast. Can it be done quickly at a higher value? Sure - it happens.

The official definition? According to the below link, there is none. It's whatever the person lending you the money to buy the property wants it to mean. The man at the below link states he has been in the private capital lending business for 41 consecutive years.

Yes, as one person stated a quick sale is quick and a short sale means you "sell short" - of what you owe the lender. Most posting here are accurate enough. But the details of a quick sale are best explained by the below link, in great detail, clearly, concisely and accurately as far as I'm concerned. Believe him, not me.

http://www.montegra.com/blog/hard-money-basics/quick-sale-vs…

Disclaimer: I have no relationship and simply found them through a search engine. I just wasn't satisfied with all the "quick sale means quick" answers here so I looked for an answer that showed true experience, accuracy and thoroughness.
0 votes Thank Flag Link Mon Apr 8, 2013
can you get a quick or short sale if your house is in foreclosure
0 votes Thank Flag Link Mon Mar 5, 2012
As I've mentioned before I am a Quick Sales, UK property Buyer. However, recently I was contacted by a person wanting a 'Short sale'. Now this took me by surprise. For one thing, this term is American and two I had previously written about the differences between a 'Short sale' and a 'Quick sale' on this thread.
Through further questioning I grew to understand that the gentleman had just come over from the States to the UK and had the responsibility of selling a relatives property ... 'Quickly'. In short, a week later the sale was complete, with cash in hand he flew back to the States. Now that was a quick sale. Why?... because the sale happened Quickly. We did not have to negotiate with the mortgage company/bank and ask them to accept a loss on what was owed to them, which would have been a Short sale.

http://www.quickpropertysales.org
0 votes Thank Flag Link Thu Sep 24, 2009
I agree with the comments from the Agents that responded. A quick sell may or may not be below market value. The buyer may or may not be an investor an individual could potentially purchase a quick sell or short sell. The buyer should make sure there is a clear Title in both cases. A short sell is a property sold below market value. The Lender/Servicer has agreed to an amount below the amount owed by the borrower (s).
0 votes Thank Flag Link Tue Sep 8, 2009
I agree, a quick sale is something an investor does when they buy your house with all cash. The investor doesn't have to wait 30 days for a lender to finance the deal.

However a short sale is when a seller goes to their lender to ask for a discounted payoff to make their house more marketable to stop their foreclosure.
0 votes Thank Flag Link Sun Apr 26, 2009
The difference is this..

A short sale describes the short fall amount the lender will accept and receive, this short fall amounts to a loss to the Bank and it really depends on the dollar amount of loss they are willing to accept.

Now a Quick sale can be some what different. A quick sale is when a seller is motivated to sell their property quickly. However, the sale could happen using many different purchasing techniques and not always resulting in a loss to the bank, in fact most cases the bank comes away with a profit.
0 votes Thank Flag Link Thu Feb 26, 2009
The answeres provided to date are technically correct, a short sale is a sale conducted for less money than is owed, and a quick sale, is something that the seller strives for and may be willing to take less to facilitate a faster closing. However, it today's environment and with the advent of new technologies and partnerships, a company called National Quick Sale is a unique blend of both. Whereas short sales can take 60 - 150 days to get everyone to agree, National Quick Sale can get a short sale offer approved (or atleast an answer) in 10 days or less. This is an incredible opportunity to use this company at no cost to the seller or buyer to get a short sale done quickly.
0 votes Thank Flag Link Wed Dec 24, 2008
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