Short Sale Explained

The Oak's in SouthWood

Short sales are a common type of transaction in today’s real estate market.  More sellers are turning to short sales as a way to avoid foreclosure.  Here’s the basic idea behind a short sale.

The Realtor working with the seller negotiates with the sellers bank to accept a price that’s less than the amount owed on the property.  As part of this negotiation, the lender typically agrees to forgive the rest of the amount owed on the mortgage.  As a result, the seller doesn’t have to go though a foreclosure, the buyer picks up a property at a discount, and the lender avoids taking on the burden of unloading the property through the typical foreclosure process.

Short sales are by no means “short” in the length of time that they can take to negotiate, often up to three months to finalize a deal.  Buyers need to be patient and work with a Realtor that understands the process.  For the savvy buyer this type of real estate transaction can be very rewarding, and a seller with a home that’s underwater avoids a painful foreclosure.

SouthWood Short Sales