WHAT IS A SHORT SALE?

A SHORT SALE is when a bank is willing to sell for less than what is owed.  The seller's lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.

**A short sale MAY or MAY NOT involve a property in foreclosure.**

There is a misconception that short sales take less time to close than a traditional sale, but that is not typically the case.  A short sale can take anywhere from between 1 to 6 months to complete and finally close ~ depending on how many lenders are involved, how cooperative the lenders are (is the 2nd lienholder putting up a fight?), how responsive the sellers are to the short sale lender's potentially ongoing requirements, how diligent the listing agent is with follow up, and a host of other obstacles and potholes! 

The fastest short sale approval we ever received was 14 days (August 2011 ~ due to a combined effort from the sellers and a VERY cooperative lender) and the one that took the longest was 14 months!  This was way back in mid-2008 when Indymac Bank (the seller's lender) was going through its 'restructure' and we got forgotten in the chaos....but we kept plugging along and out of the blue one very fine day, we received approval and finally closed escrow!  "Stick-tuitive-ness" was the name of the game in that short sale transaction.

**Please visit our website dedicated to Short Sales ~ the short sale process, tax implications, government programs, short sale News and more!

A short sale may have credit or legal consequences and may result in taxable income to the Seller. The Seller is advised to seek advice from an attorney, certified public accountant or other expert regarding such potential consequences of a short sale.