What is a Short Sale?

A "short sale" occurs when the net proceeds from a home sale are not enough to liquidate the amount borrowed from the lender, and the seller is financially unable to pay the remaining balance.

Short sales can happen for many reasons including an inability to make mortgage payments, a loss of employment, divorce, illness, and disability.

Short sales are favorbale for both the seller and the lender.

The seller is able to avoid a possible forclosure or sheriff's sale, either of which, destroys their credit. 

The lender also avoids the attorney's fees, equity loss, and the other costs associated with forclosures or sheriff sales.

Short sales genarally take 90-120 days while forclosures or sheriff sales can take many months or even years to complete. During that time, the lender has to carry the costs associated with the property due to the fact that the seller is completely financially deficient.

There are factors that both a potential seller and a potential buyer should be aware of in a short sale. If you have any questions or would like to know about these factors, simply fill out the form below!