Thread: What is a Short Sale?

I've just check on google and found a very good post about short sale in wikipedia. I am not allowed to post link here but you can check it easily

short sale seems happen when both side have to do in certain condition that can't avoid.
It should be avoid if possible.

It is an undeniable fact that more often than not, many home owners are put into a situation where they could no longer pay off their mortgage because the properties were undervalued - priced lower than the loan obtained. If one thinks that foreclosure could be the only remedy then that is wrong for there are still others, and one of which is short sale by which the the owner proposes to the lender the sale of the mortgaged property at a lesser price in order to benefit both parties.

Among the benefits of having a short sale are the following:

(a) Owners are saved from having a bad credit history or being regarded as a bad client;
(b) Makes the owners of properties worry-free from looking for funds to answer the credit and shame -free from having their properties foreclosed by the bank.
(c) It provides an adequate and immediate solution for the mortgage foreclosure process.


Fhil F.
Social Media Manager
on behalf of Derrick Sakai

A short sale is when you are selling something (house, car, rv etc) for less that the agreed upon pay off. Short selling means the seller is accepting it short. After the acceptance there are a few more steps the seller could attempt for retribution but that is basically it.

In a short sale, a seller facing potential foreclosure strikes a deal with their lender to accept less than they owe on the property, in exchange for avoiding foreclosure.

Buyers pursue short sales to get a good deal. So when you see a price listed for a home that you think is too low for the neighborhood, before you jump on that price like hot fudge on a sundae, asks your agent to call the listing agent to find out if the home is a short sale.

There are many ways to lose a home but signing away ownership in a manner that destroys credit, embarrasses the family and strips an owner of dignity is one of the hardest.

Buying a Short Sale

Buying a short sale is not like buying a property in a traditional way. A short sale may have some risk but it also can be very rewarding. When you are searching for a short sale you will want to make sure you are prepared. Here are some things you will need to consider.

First of all, you need to make sure that you have enough time. It takes anywhere from 30 days to 6 months or even more to get an answer on a short sale. It really depends on many factors. It requires a proof of funds letter if paying cash or a pre-approval letter from a lender if obtaining a mortgage. The seller must approve the purchase offer before it gets submitted to the bank. The bank may come back with a counteroffer or reject your offer completely. In some instances you may not even hear back from the bank at all.

Short sales take a long time because the bank has to review it and they are back logged with many short sales and don't have enough coverage to complete them in a timely manner. The bank typically is willing to work with the seller and buyer on short sales to help avoid foreclosure.

One of the benefits of buying a short sale is that the bank is typically willing to accept less money for the property because of the time and risk involved. So you generally are getting the home at below market value.

If you have the time to wait, a short sale is a good way to go. One thing to be sure to ask when purchasing a short sale is, "who is handling it?" Is the Realtor an experienced short sale expert? Or is the listing agent using a Short Sale company that strictly focuses on short sales? By having someone with knowledge and expertise in short sales, it will make the process go much smoother and faster.

To help you deal with short sale you can hire real estate agent who follow up transactions in timely manner and protect your interest as well.