What is a real estate “short sale”?

sshirfree: What is a real estate “short sale”?

Answers and Views:

Answer by Drew
IT mean they have tried to flip or just the home and they own more than they can sell it for. The bank will forgive the rest and just let them walk away.

Low ball time, also check out this web site.

https://www.breakingbubble.com/

Look at the house if it was a flip do not buy it since it was some of these flippers fault for the big mess the market is in.

Answer by Jelexi
I think it’s when you sell for less than what is owed on the mortgage but I’m not sure

Answer by greg
A short sale has nothing to do with flipping. It describes the situation wherein a lender accepts less than is owed on a property as payment in full. This usually only occurs when the property is fully encumbered, i.e. little to no equity, and the bank is likely to incur a loss even if they foreclose. It also cannot come from the owner. That is, you cannot go to your bank and say I can’t pay my mortgage but can I buy it for 80 cents on the dollar. A typical situation: A homeowner with 100 percent financing on a $ 400,000 loan loses their job and can’t make payments. They can’t sell on the open market because a realtor will charge $ 24,000 which they don’t have. A request is made to the lender to accept $ 370,000 as payment in full if a buyer can be found. The lender agrees, because the alternative is an expensive foreclosure and resale process. Better to cut their losses. The house is then sold for for between 370 and 400, with enough money to pay a realtor and closing costs, etc. The bank has accepted a “short sale.”

Answer by frankie b
It means the bank is allowing you to sell the property for less than you owe them. Short sale, short of the amount owed.

Answer by Eric F
Short Sale – A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured by the property for less than is actually owed. The only drawback to the buyer is that the mortgage company(s) must approve the sale and this usually takes 5 to 15 working days.

Before you even consider making an offer, find out if the seller has obtained pre approval from the lender(s) for a short sale. In some cases, the seller is just being hopeful and you can waste a lot of time.

Eric Fernwood
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Answer by shelton s
A Short Sale is when someone is behind on their payment’s and a realtor is negotiating with the seller and the lender to sell home prior to it being forclosed on.