A "short sale" is when the homeowner owes more on their mortgage loan(s) than the property is worth, and they are attempting to sell the home in hopes of getting the lender(s)to approve the sale and take less than payoff.
In one sentence, that's it. But it's a VERY complicated and difficult process,and only about 10% of them ever make it to closing.
Does that help?
A Short Sale happens when a seller is so upside down in their home they actually "loose their shorts" thus the words "Short Sale"...
OK, not on a serious note. The owner/seller is selling the home "short" (less than) of what is owed.
Inspire Realty Group
Keller Williams Realty
2008-2009 Master of Real Estate award recipient