Short Sale Definition And Defining A Short Sale

The short sale definition has many components to it, with just as many terms in it.  These terms are the fundamental principals in learning your way around a short sale, despite  how intimidating they can be.

There is one thing that is easy to understand and that is the need for a knowledgeable Realtor to stand behind you during this process.  It will help you to understand everything and make things a lot smoother.

If you recruit the help of an inexperienced Realtor it could lead to a foreclosure instead of a short sale.  When choosing a Realtor look for detailed qualifications including a past record of approved short sales for a minimum of five families.

If the Realtor is inexperienced ask what kind of team they are working with, it is better to have one even if he/she is knowledgeable.

Get Access To More Great Content: Become A Free Business Kahuna Member

Put simply, the definition of a short sale is the point when the bank is willing to take less than what is  owed on the property.  The term short sale actually comes from the bank  willing to take short of the mortgage.

Other short sale definition terms include Loss Litigation Dept. and BPO.

The Loss Litigation Dept. is a department at the bank that specializes in the losses that a bank is going to take and litigate them; with litigation being able to be seen as negotiating or analyzing things and going through the  process of cutting the banks’ losses as much as possible.

This is the department that you or a Realtor  needs to get to so you can start  the short sale process because they are the decision makers on whether or not your short sale will be approved.

Another term is BPO, broker’s price opinion.  This is similar to an appraisal, but it is done by a Realtor or a Realtor’s assistant.  One more difference is the cost; it is much less than that of an appraisal.

That is why the banks use that price  to establish the current market value on the home and then to make a decision on if they are going to approve the short sale or not.

As you can see, once you know the short sale definition and the terms linked to one, the process is not as intimidating as you once thought.  Simply remain calm, understand what is going on and the definition of a short sale and things should go relatively good.

Get Access To More Great Content: Become A Free Business Kahuna Member