A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. In fact, prior to 2007, most people employed in the banking/mortgage industry had never even heard the words "Short Sale" themselves. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals, and currently only a small fraction of licensed real estate agents have been trained to handle these specialized transactions. Short sale transactions are EXTREMELY paperwork intensive and every detail is critical.
As Certified Distressed Property Experts, we have been specifically trained to handle these complicated transactions, we literally "get between" the troubled home owner and the current lender, and in all the short sales we've completed, our clients paid little or no costs related to the selling of the property through a short sale transaction.