What is a short sale?
It is a common misconception that short sales are, well short. In terms of escrow and length of time during a transaction, a short sale usually takes longer to close.
Why is that?
A short sale is when a seller's lender is willing to accept an offer and allows the sale to be completed for an amount less than the mortgage amount owed by the seller.
How does this happen?
The seller can no longer make their mortgage payments and are too far behind on their payments to catch up. The house may be worth less than the amount owed on the remaining balance on the mortgage, due to market conditions.
What should the buyer know?
It’s important to understand that the lender makes the final decision on whether or not to accept an offer and is in control of the short sale process.