A Short Sale is when a Seller sells their property for less than what is owed to the Bank. The Lender has to approve a Sellers financial position and their hardship reason to do this. The Lender also has to approve the sales price and all expenses related to the sale.
This can be a win/win for Buyer and Seller. The Seller is in most cases forgiven the debt or “short” and the Buyer can potentially pick up a property for less than market value. In my experience with Short Sales that amount can vary and sometimes not be far under Market Value.
If you would like more information on Short Sales please feel free to contact me at: