What Exactly Is A Short Sale
Simple question but I never had anyone explain what a short sale is and how they work. Could someone please give me a short answer on this.
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Simple question but I never had anyone explain what a short sale is and how they work. Could someone please give me a short answer on this.
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A short sale is when the bank accepts less than what is owed on the property.
Example: A judgement is made for 100k and the amount owed on the house is 100k. They may take a short sale for 80k, because the bank just wants their money, not a property. They also have attorney's fees, holding time, etc. (other costs) that go along with the property.
So the bank would be accepting 80k for the property even though the amount owed was 100k.
Does that explain it?
Ryan J. Schnabel
Yes it does. Thanks!
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A short sale is a realty transaction which occurs when anticipated proceeds from a sale are insufficient to payoff all lienholders (usually the mortgagees) in full. In advance, the lienholders agree to facilitate the sale by accepting less than they are contractually due, though they are under no obligation to do so. Many mortgage lenders agree to let a financially troubled Homeowner sell in an attempt to recover as much of the mortgage balance as possible, rather than foreclose, even if the sale proceeds won't satisfy the total amount due.