Short Sale? What's a Short Sale?

I am constantly asked by clients and friends "What's a Short Sale?". Some people think that a Short Sale means that the seller is trying to get rid of their property as quickly as possible in a "Short" period of time. Some people have asked if a Short Sale means that the seller is trying to sell the property short of its value. Neither are correct!


A Short Sale is when you are allowed (with bank approval) to sell your home for less than what is owed on it with out repaying or partially repaying the difference. WHAT!! Why would the bank do that??? Well, the bank would consider a short sale for many reasons. Some of which include: the homeowner cannot afford the payment and is falling behind, job loss, future loss and prevention of foreclosure.


Recently, banks have been rolling out new programs to help homeowners Short Sale their home other than forcing a foreclosure. With new mandates and procedures the Short Sale process is becoming more streamlined and systematic.


Please understand that a Short Sale does not come without implications! You must expect a large ding to your credit and may be ineligible to purchase a home for a few years, however a Short Sale is far better than a Foreclosure and can help you get back on track.

If you have any questions about Short Sales, post a comment or give me a call-

MW