What is a short sale?

Asked by carolwinter1962, Cape Coral, FL Wed May 15, 2013

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Kirsten Priz…, Agent, Naples, FL
Wed May 15, 2013
Home sellers could consider a Short Sale when the value of their home is LESS than the amount of their outstanding loans.

For example, if your home is worth $200,000 but you have a loan of $260,000 then a short sale is a consideration. Obviously, if you do not have to sell your home, you could wait out the market and hope for a turnaround in real estate values.

However, if you do have to sell your home you basically have three options.
First, you can bring cash to the table. In the example above you would sell your home for $200,000 and pay another $60,000 to the lender out of your pocket to pay off the loan on your property.

Second, you could let the home go intoforeclosure. The lender will go through the foreclosure process, force you out of your home and then auction it off to the highest bidder at a foreclosure or Trustee’s auction.

The third option is to pursue a short sale. You contact the lender, explain the circumstances and convince them to take less than full value of their loan.

If you list your property in a short sale transaction make sure that your realtor has already closed a few short sales in order to work you through the process in a professional manner. There are few in and outs your realtor needs to know.

In the case above you may tell your lender you have a buyer for $200,000 and it’s very unlikely there will be a buyer at a higher price, along with a few comparables from your neighborhood. If they will accept $200,000 for their $260,000 loan then you can proceed with a short sale.

Sometimes the lender will consider a short sale before you have a buyer and you can market your property and, if you find a buyer, take their offer to the lender for consideration. Most likely you will have to start marketing your property as not approved short sale. The lender may or may not accept the offer.

A short sale proceeding may take 1 month to even 9 month and more.
Kirsten S. Prizzi
AC Global Property Management Lee County, LLC
FL Lic Real Estate Broker
Immobilienfachwirt / Immobilienmakler
Telephone: 239.248.1667
Residential & Commercial Real Estate
Email: Kirsten@RealEstateFloridaUSA.com
Location is just the beginning!
1 vote
Kim Benedict, Agent, Overland Park, KS
Sat Mar 21, 2015
The quick version :
Your in trouble and having a hard time making your payments on the mortgage, you talk with the bank you want/need to sell. They agree to take less then whats owned on the mortgage to pay off, and you sell the home.
0 votes
Judy Wilson, Agent, Fort Myers, FL
Sun Mar 1, 2015
Short Sale would be having a lender accept a deficiency amount from the total mortgage and associated fees owed. I am certified in Short Sales with Coldwell Banker. Please contact me if you have futher interest in discussing a Short Sale.

Judy Wilson
0 votes
Robert Guth, Agent, Cape Coral, FL
Tue May 27, 2014
The process of a mortgage holder to allow the home owner to sell the property that was used as collateral, for less than the total debt owed to the lender.

Family owes $180,000, but the market value is only $120,000.....lender agrees to allow family to sell for $120,000. They allowed them to "short sell" their home.

To search all homes for sale like a Realtor, get a free market analysis of your home, mortgage help, or to check out local places and events, go to:


Currently recruiting new prospective first time home buyers, 2nd home buyers, and investors. Here is your mission:

0 votes
Terence Trom…, Agent, Cape Coral, FL
Mon Jun 3, 2013
If you are not working with anyone else I would love to answer all of your questions and help streamline the search process for you. I go beyond my customers expectations by locating the perfect property that fits your needs, negotiating the best deal possible and protecting your interests every step of the way. Call me and lets talk about how I can help you find a home you will love.


Terence Trombetti • Realtor®
Licensed Florida Realtor Since 2004
Gulf Coast Realty Network
Mobile 239.560.1574
Search For Homes On The REALTOR's MLS
GO TO: http://fl.living.net/idxrealtor/1222901

*Contact me for a current list of active properties that fit your needs too. Conventional, foreclosure and short sales. All properties I send come directly from the Realtor's MLS system and therefore are real-time current information, only active and available homes.

**If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks.
0 votes
Antonio Vega…, Agent, Saint Cloud, FL
Wed May 15, 2013
I have had several people say this was a very good and simple explanation> http://www.trulia.com/blog/antonio_vega-pacheco/2011/08/when…

Tony Vega
0 votes
Maricel Zald…, Agent, Coral Springs, FL
Wed May 15, 2013

A "Short Sale" occurs when a lender agrees to accept less than the amount owed to payoff a loan as an alternative to foreclosure. If the property is worth less than the amount owed on the loan, then even if the lender foreclosure and takes back the property, they know they are going to take a loss.

Have a great day.

Maricel Zaldumbide, CREO.
Broker, Lic. Real Estate.
Short Sale & Foreclosure Specialist.
AllianZe Realty Group.
0 votes
Eric Pfeifer, Agent, Sanibel, FL
Wed May 15, 2013
The short sale is a process by which the lending institution agrees to allow the seller to sell their property for less than the amount they owe their lender without permanently ruining their credit record. Short sales have become a popular investment opportunity for many Southwest Florida buyers. While the Sanibel real estate market has been relatively insulated from economic shifts, it does have several short sale opportunities. The short sale process requires patience and persistence since the time between an offer’s submission and its acceptance can be lengthy. Pfeifer Realty Group has helped many buyers, sellers, and lending institutions with their short sale transactions.

A short sale is a valuable tool to keep an owner from foreclosure and the negative impacts to their credit record. Foreclosures and pre-foreclosure opportunities can also be found throughout the Southwest Florida real estate market.

To Learn More Visit: http://www.mysanibelrealestate.com/sanibel_short_sales_forec…
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Bill Eckler, Agent, Venice, FL
Wed May 15, 2013
Entire books have been written on "Short Sales." The following outline may be helpful:

1. Short sales are anything but "short." If you're not a patient person it's not a good choice

2. Always involve two part negotiations: the owner and their lender

3. Many mistakenly feel these offerings are a source for greatest opportunities

4. They occur when the amount owed on the mortgage exceeds the value of the property

5. The advertised price is nearly always increased by the lender(unless it's a bank approved price)

6. There are without a doubt the source of the greatest amount of disappointment in real estate

7. They are always "AS IS" transactions-without repair

8. They used to be so difficult, mist agents avoided them. This is no longer the case

9. They are always "arms length" transactions." Meaning the new buyer can not in any way be connected to the owner as a relative, friend, business associate, etc. of the seller

10. The fact that banks are finally accepting this market segment is one of the main reasons why we are seeing a decrease in the number of "foreclosures" entering the market.


0 votes
Marge Bennett, Agent, Fort Myers, FL
Wed May 15, 2013
basically, it is when you as the seller owe more than your home is worth and you have a qualifying hardship that would persuade the bank to take the loss when you sell. Chris and his gang do a great job negotiating and closing short sales. If you are ready to list, I would be happy to take care of that for you.
Marge Bennett
RE/MAX Realty Group
0 votes
Marc St Mart…, Agent, Fort Myers, FL
Wed May 15, 2013
A short sale occurs when a seller's home is worth less than what is owed. The seller asked the lender to accept the current value which creates a "short" payment. From a seller's credit perspective, it is a much better alternative to foreclosure. It is advantageous to the lender since the avoid the additional cost and time involved in the foreclosure process.
0 votes
Chris Black, Other Pro, Fort Myers, FL
Wed May 15, 2013
Hi Carol!
We have some very instructive eBooks on short sales up at http://www.wingedfoottitle.com/ebooks/.
If you are on the consumer side, check out the "10 Questions" book. If you are a real estate professional, the "12 Questions" would be better suited.
Best of luck.

Chris Black
Attorney & Owner
Winged Foot Title, LLC
8695 College Parkway, Suite 2350
Fort Myers, Florida 33919
P: (239) 985-4142
F: (239) 425-3518
W: http://www.wingedfoottitle.com
Blog: http://www.homeclosingprocess.com
0 votes
Terry McCarl…, Agent, Cape Coral, FL
Wed May 15, 2013
Hi Carol,

A short sale is when a homeowner owes more to their lender than they can sell the home for.

I was one of the first real estate agents handling short sales and have an extremely high success rate in getting them closed as well as getting the lender to waive their right to pursue a judgement against the seller for the remaining debt.

If you are upside down in your home and need to sell please contact me. I will gladly explain the entire process to you as well as provide you with references.

Additionally, depending on your lender I may be able to get relocation funds given to you by your lender. Normally with a short sale you do not get any money from the sell of the home but if your Realtor has the knowledge and experience you can get out of a bad situation, relocate and start fresh.

Whoever you choose to work with make sure they have lots of experience with these complicated transactions.

You can email me at leecountyrealtor@earthlink.net or call me at 239-707-4575.
0 votes
Pam Wittenau…, Agent, Fort Myers, FL
Wed May 15, 2013
Hi Carol,

A property that sells for less than the balance that is owed on the mortgage. A real estate short sale is when your mortgage bank agrees to take less than what is currently owed on the unpaid balance. A short sale can provide mutual benefits for both the homeowner and the bank because it helps both parties avoid foreclosure.

I will be happy to help you with homes in the 33919. Please call me at 239-989-7077.

Pam Wittenauer
0 votes
Beverly LaLo…, Agent, Bonita Springs, FL
Wed May 15, 2013
Carol, the effects of a short sale depend on whether you are the seller or buyer! From the seller's perspective, it is a way to get out from under a mortgage where you are underwater—when your home is worth less than you owe.

From the buyer's perspective, a short sale adds an element of uncertainty because their offer must be approved by the seller's lender—and the sale usually takes longer, so those in a hurry can't wait.

The ins and outs of short sales are changing rapidly right now, and they provide a great opportunity if handled correctly. I'd be pleased to explain more....please email me at bevlalonde@gmail.com or click on the "Contact Me" link. Thanks!
0 votes
Terence Trom…, Agent, Cape Coral, FL
Wed May 15, 2013
Carol, if you would like to see active listings in the 33919 area code, please contact me. I also can help you with financing. regarding the 33919 area code, I can send you all of the active listings in that area sent to you directly from the Realtors MLS system. Please contact me either by phone or email and I will assist you in every way I can.

Kind regards,

Terence Trombetti • Realtor®
Gulf Coast Realty Network
4002 Del Prado Blvd. S.
Cape Coral, FL 33904
Mobile 239.560.1574
0 votes
Andy McCreedy, Agent, Fort Myers, FL
Wed May 15, 2013
As the other responses state a short sell is selling your home for less than what is owed if all parties involved agree. There are a important factors in completing a short sale successfully most importantly is providing the necessary documents in a timely fashion. This can included 2yrs tax returns, bank statements, hardship letter and your agent has to be up to date with the individual lender required forms for completing the short sale. Many home owners have multiple loans on their property which make it more challenging but not impossible. If you are in need of hiring an agent or broker to assist you in the short sale process be sure to select an agent or broker who has the experience in short sales. Look for an agent or broker who has a designation like SFR (short sale and foreclosure resource) as they have been trained in handling short sales and their successful short sale closings speak loudly.

I'd be happy to discuss your options more in detail

Thanks and talk to you soon!

Andy McCreedy, SFR, GRI
Aggressive Realty Service, LLC
“Professionals with Passion”
Office: 239-362-4292
0 votes
Susan Callah…, Agent, Fort Myers Beach, FL
Wed May 15, 2013
First off, Short sales are anything but short !

A short sale occurs when the value of the loan exceeds the current market of the home. The homeowner is upside down. They ask the Mortgage holder to accept less than what is owed.
It's a situation for the homeowner to avoid foreclosure.
They can get tricky especially is there is a second mortgage holder involved and if back taxes,HOA fees
are also owed.

The price advertised and the price accepted by the homeowner may not be the price the Lender is willing to accept. After what could very well be months of waiting the Lender may do a last minute appraisal and that will be the price they're willing to accept.
At this point many buyers simply walk away.
0 votes
Terence Trom…, Agent, Cape Coral, FL
Wed May 15, 2013
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts, and whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.[1] Any unpaid balance owed to the creditors is known as a deficiency.[2][3] Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties. However, in California, legislation was passed to preclude deficiencies after a short sale is approved. The same is true of lenders on first loans and lenders on second loans — once the short sale is approved, no deficiencies are permitted after the short sale.

I have sold millions in southwest Florida homes and I specialize in working with Buyers. I am an expert at locating the perfect property that fits your needs, negotiating the best deal possible and protecting your interests every step of the way. Call me and lets talk about how I can help you find a house you will love.

If you would like to search for properties like a Realtor on the Florida Gulf Coast Multiple Listing Service, go to http://www.gulfcoastproperty.net. Click on the "MLS" icon to the right.


Terence Trombetti • Realtor®
Gulf Coast Realty Network
4002 Del Prado Blvd. S.
Cape Coral, FL 33904
Mobile 239.560.1574

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks.
0 votes
Gary Geer, Agent, Antioch, IL
Wed May 15, 2013
Here is a short answer for a short sale. The lender who owns the mortgage on the property accepts less than what they are owed to enable the sale.
0 votes
Scott Godzyk, Agent, Manchester, NH
Wed May 15, 2013
Simply put the home owner owes more than the house is worth. The seller seeks an approval from their lender to sell for less than what they owe. It is a process that can take 30 days to 3 months in most cases. It only goes as well as the listing agent is experienced and prepared to list and negotiate the short sale.
0 votes
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