What is a short sale?

Asked by Steve Henshaw, Marlborough, MA Thu Jan 6, 2011

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4
Christopher…, Agent, Tarrytown, NY
Mon Jan 31, 2011
Hi, A short sale takes place when the homeowner owes the bank more then the home is worth or going to sell for. This process is subject to bank approval and can be a very lengthy process. Most of the work is on the sellers side, they need to first prove a hardship to the bank. The banks are specific about what a hardship can and cannot be. Once that is done the bank will review all of their finances, etc and determine if it will be easier to short sale rather then eventually foreclose. Keep in mind a short sale is typically a pre-foreclosure measure.

As a buyer, you don't normally know if the bank has accepted the offer you made to the seller until there is a fully executed contract and full workout package submitted. if you proceed with a short sale doe yourself a favor and continue looking at homes and also have low expectations.

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
914.406.9023
0 votes
Carlos Del A…, Agent, Coral Gables, FL
Mon Jan 31, 2011
Steve, I have closed 3 short sales in the last month. As a CDPE ( Certified Distressed Property Expert ) I know the process quite well. Go to my link below on Short Sales to get a better understanding of the process.

Good Luck.

Carlos del Amo
President
Smart Growth Realty
0 votes
Lyle Wolf, Agent, Morristown, NJ
Thu Jan 6, 2011
Steve
The following 2 articles can help answer your question:

The 4 Foreclosure Real Estate Opportunities
http://www.trulia.com/blog/lyle_wolf/2010/11/the_4_foreclosu…

What Every Buyer Needs To Know About Short Sales
http://www.trulia.com/blog/lyle_wolf/2010/08/what_every_buye…
0 votes
Sarah Rudino…, Agent, Seattle, WA
Thu Jan 6, 2011
A short sale is a property that is being sold for under what the seller owes on it. Essentially, they are selling "short". Sometimes sellers are still making their payments to the bank but the market price of their home is below what they owe and many times the seller is behind on their payments but the bank has not foreclosed on their home so they still own it, but are short selling before the bank can foreclose on the property. It is best to talk to the listing agent to find out what position the sellers are in and how realistic the sticker price of the home is.
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