What is a short sale

Many prospective buyers find the term short sale in property descriptions and advertising. But what does the term refer to? Against some public belief this has nothing to do with the time frame of a sale but more with the current lender and the money owed on the property. A short sale occurs when the sale price does not cover the funds needed to pay off the existing mortgage on the property. In some instances a lender will agree to take a loss in order to allow the sale to take place. This is a way for the owner to prevent foreclosure and negotiate a deal with the lender. A buyer can find great deals in short sales but such a transaction can be complicated to facilitate. Sometimes it takes months to get responses from a lender and sometimes the deal falls apart because the bank does not agree to the terms. It is important to be prepared to wait a longer time or to approach multiple property owners at the same time to come to a conclusion. Short sales are certainly not for everybody, but some buyers are able to find a bargain price purchase opportunity among the distressed sales. For more information call us or email us.