What is a Short Sale?

A short sale can happen when a homeowner owes an amount on their property that when combined with closing costs and commission, is higher than current market value. A negotiation is entered into with the homeowner's mortgage company or companies to accept less that the full balance of the loan at closing.  A buyer closes on the property and the property is 'sold short'

However, this short sale cannot happen unless certain criteria are met by the borrower--simply owing more than the property is worth does not qualify for a short sale.

If the borrower can meet the short sale criteria, then Foreclosure can potentially be avoided and it is much better to go through a short sale than a Foreclosure!

Why would a bank or mortgage company be willing to take less than they are owed?  Because they would rather not have to Foreclose and incur the cost of owning the property.  A short sale can acutally save them money and save your credit.

It takes a special skillset to navigate the complexities of the short sale process and a CDPE designated Realtor^® has the knowledge and the tools to help you.  I have a special site devoted strictly to the issue of distressed properties that will give you even more information.  To go there, click on the CDPE logo below: