What Is A Short Sale?

What Is A Short Sale

What is a “short sale”?  A short sale happens when the lender has shorted on a mortgage, meaning the lender accepts less than the total amount that is due. To avoid going through a foreclosure, a lender will sanction a short sale by letting a buyer purchase the home for less than the mortgage balance while the home is in pre-foreclosure stage.

Below is a sample set of steps for a short sale:

  • Seller signs the listing agreement with a real estate agent subject to selling as a short sale with third party approval.
  • The agent finds a buyer who makes an offer for less than the amount of the mortgage.
  • Seller accepts the potential buyer’s purchase offer.
  • Seller’s lender accepts the potential buyer’s offer.
  • Transaction close when the buyer delivers the funds, the lender releases the lien and the seller delivers the deed.

Qualifications for a Short Sale:

  • Home’s market value has dropped.
  • Mortgage is in or near default status.
  • Seller has fallen on hard times.
  • Seller has no assets.

Contact Us to see if a short sale is right for you

About Ashley Leigh

Ashley Leigh is one of the most successful real estate agents in the United States and founder of Linton Hall, Realtors®, the premier real estate company in Prince William County, Virginia. In his book Billion Dollar Agents, Steve Kantor featured Ashley for individually producing well over $2 Billion in career sales selling thousands of homes. Ashley Leigh's innovative marketing programs have been have been written about in Fortune magazine. Additionally, Ashley has been profiled in RISMedia’s Real Estate Magazine and Power Team Report and has been recognized by REALTOR Magazine as one of the Top Sales Agents in the U.S. The Wall Street Journal ranked Ashley as one of America’s Top 20 Realtors in the Nation for his sales production for several years. Connect with Ashley on Google+

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