About Short Sales

A short sale listing is an offering of property by the owner for a sale price less than that owed to the mortgage lender. This is an attempt by the owner to sell the property with the lender agreeing to release the property while receiving less than full payment for the loan amount owed.

The listing price may be somewhat inconsequential as the lender in most cases has not agreed to accept a specific price. It could be considered a starting point, with offers possibly coming in lower, and the lender either accepting an offer, or requiring a higher amount – possibly above the listing price. “Pre-approved” short sales suggest the lender has accepted the listing price as the sale price.

Proof of funds for cash offers and financing preapproval letters are typically required for an offer to be considered. Time delays in receiving offer responses/acceptances and long closing periods may occur.

Although short sales may require additional time and patience, good value can be found for those who persevere.

Jim Green