Real Estate Blog

I've recently been asked "what's a short sale." So, I thought I would post the answer on my blog. I hope the inforamation helps.

On a short sale, the house is technically still owned by the homeowner (who is usually behind in mortgage payments and facing foreclosure).  The homeowner owes more on the home than the balance of the loan and they wish to sell it for the market value. The bank can either agree to a short sale and forgive the unpaid debt, or foreclose on the home and re-sell it. There are so many of these that the banks are taking weeks in some cases to review offers.  This is alright unless someone is in a hurry and needs to close on a home purchase within 30 days. Short sales usually take 60-90 days to close from the date of offer, although the timeframe is improving lately.