What Is A Short Sale?

What is a short sale?  This seems to have more questions than answers.  There are two things that are easy to understand: the need for an experienced Realtor’s assistance, and to know that this is not an easy process.

To put it simply, a short sale is when the bank is willing to take less, or short, of what is owed on the mortgage; in other words a short pay off of the full mortgage.

As an model of what is a short sale is when you first purchased your property it was for $200,000, but today it is only worth $100,000; now what?  This is when a short sale comes in handy.

Once you have an offer that is reasonably close to what the value is on the house you may go to the bank and explain things in a way that would make them want to proceed with a short sale instead of a foreclosure.

Although a very serious hardship must have fallen on you, as to why this should be a short sale and nothing else.  If there is no real hardship  the short sale will not be approved.

The short sale has come into play because of the vast difference in the value of a home when bought and the current market value of it.  Only a short sale as a last resort.  Once as you have figured out what a short sale is you can begin the process of relieving a great burden from your shoulders.