What's a Short Sale?

A short sale is called such because the bank that holds the mortgage on the home agrees to get "shorted" when the property sells for less than the owner owes. For example, if Jack Jones owes $145,000 for his home, but despite his agent's best efforts the best offer they have gotten for the home is $125,000, if Mr. Jones meets certain criteria the bank may approve a short sale for that amount.

A short sale is not short in terms of time, it usually takes 60 - 90 days to close a short sale because of all of the paperwork and logistics of dealing with the bank. But, it's a win-win-win for everyone. The buyer gets a good deal on a home, the seller gets out of a mortgage he/she can't afford, and the bank avoids taking possession of another foreclosure. So, if you are shopping for a home and you find a short sale that you like, hang in there! If you are seller facing foreclosure, stop avoiding those calls from the bank and call me so we can sell your house!

For additional information for property owners who are facing foreclosure, click here.