What is a short sale?

Many people are confused by this term, and how it is different from a foreclosure.

A foreclosure means that the homeowner has defaulted on the loan, and the lending institution has taken the property back. These properties are often called REOs – short for Real Estate Owned.

A short sale situation occurs when the homeowner owes more on the property than its current market value. Given the roller coaster ride that was the real estate market, this isn’t an unusual situation.

It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

Short sale transactions can be complex and time consuming transactions. It takes a team of experienced, dedicated Realtors® to successfully navigate the processes and procedures.

Click here to send an email to our short sale specialists to request more information. We represent both buyers and sellers in these intricate and complicated transactions.