Short Sale Definition, Please
Would someone Please explain to me what a Short Sale is? Please use no lingo, or abbreviation...I'm not really dumb, I just have looked everywhere and the definitions have words in them that don't mean anything to me.
Thanks in Advance.
Patrick
A mortgagee approved, preforeclosure short sale is a realty transaction which occurs when anticipated proceeds from a sale are insufficient to payoff all lien holders (usually the mortgagee) in full. In advance, the lien holders agree to facilitate the sale by accepting less than they are contractually due, though they are under no obligation to do so.
[addsig]
In even more layman terms the homeowner is behind in payments and the bank is looking to foreclose. Lets say the total due is $100,000 but the home is worth $80,000. The bank knows that if they take it back they will lose more than just that $20k in time, effort, etc. A short sale is when the bank agrees to let the homeowner sell the house for less than what is due to them. They will do this because they would rather cut their losses now and move on.
It is true a short sale can be with other liens but it is primarily the mortgages.
Thanks so much, both of you guys! I think that there's a huge possibility for short saling here in Detroit but I'll see...
Thanks again for the fast clarification
Parick 8