What are Short Sales?
Something I try to stay conscience of is, when you are in a certain industry, it’s very easy to take “industry terms” for granted whereas your client or the consumer may not understand. In real estate, take “short sales” for example. I get asked this question all the time,
What exactly is a short sale?
A short sale is when a seller has a mortgage on their house (say for example $150,000) and they sell the house for less than what is owed on it (say for example $125,000). Barring other expenses, they are “short” $25,000 dollars. The bank agrees to accept the $125,000 as a payoff so the seller can sell his house despite the shortage, hence “short sale”.
This is a pretty simple explanation albeit the process is not that simple and there are of course ramifications.
Watch for upcoming articles about these ramifications and advantages of a short sale verses foreclosure, deed in leiu of foreclosure, etc.
Make it a great day!
Mitch Muller is a Certified Distressed Property Expert® with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners.