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A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

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โˆ™ 2010-09-15 18:26:10
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Q: What is a short sale?
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Related questions

Where can I find a price on a short sale?

Many realtors will sell a house as a short sale. However a short sale has to be approved by the bank first.


How long will you credit be messed up if you are doing short sale?

A short sale is an option when a property owner is not able to afford the obligations of a loan. The amount of time a short sale is on a credit report can be answered by a lawyer who is assisting in the short sale. A short sale may hinder future loans.


Is a short sale public record?

is a short sale on public records


Can you purchase a short sale with an fha loan?

Yes, you can purchase a Short Sale with an FHA loan. There are no restrictions on the type of financing in the purchase of a short sale.


Can you short sale your house to your spouse?

A short sale must be approved by the lender. It will not approve your proposal.A short sale must be approved by the lender. It will not approve your proposal.A short sale must be approved by the lender. It will not approve your proposal.A short sale must be approved by the lender. It will not approve your proposal.


Buyer's short sale savings?

Short sale is a great option for investors who want to make some money. If they make a smart purchase of a short sale home they can earn a huge profit. But, they need to be very careful when buying a short sale.


What does ssa stand for in real estate listings?

Short Sale Advisory ~ or Short Sale Addendum


Can you short sale to family?

Generally, no a homeowner cannot sell a short sale to a family member or other related party. This would violate the arm's length transaction requirement of a short sale.


What happens to your credit on a short sale?

A short sale will have a detrimental affect on your credit record but not as bad as a foreclosure.


Do you have to pay your mortgage when you short sale your home?

From what I understand the bank has to agree to the short sale and then takes that as the mortgage paid.


Is it better to short sale a house or refinance to get credit in good standing?

It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.


What are the short sale ramifications?

A short sale incurs a loss for the bank or other institution that extended the loan to the homeowner. Therefore, the homeowner must negotiate the terms of the sale with the bank before attempting to sell the property. There are a variety of consequences for the owner of a short-sale property.


What do you do if a bank refuses a short sale offer?

If a bank refuses a short sale offer, you can only make a new offer to the bank. Your real estate agent will be able to give more details about the short sale process.


Do you have to live in the house to do a short sale?

You do not need to live in the house to complete a short sale. In order to qualify for the HAFA short sale you would need to of lived in the property within the last 12 months.


How do you get out of a second mortgage when the house has been sold on a short sale?

How do you get out of a second mortgage when the house has been sold on a short sale?


What is a short fall sale?

A "short sale" refers to a home that is being sold for less than the balance owed to the mortgage company. For example, a home is listed for 450,000, but the owner owes 600,000 on the home. This would be a short sale.


Can you get sellers concession on short sale?

Yes, but the amount of the concession depends on the type of short sale. An FHA Short Sale (under the HUD Pre-foreclosure Sale Program) can include up to a 1% seller concession only if the Buyer is utilizing FHA financing in the purchase. A HAFA Short Sale will allow a seller concession, but the amount depends on the proposed net proceeds to the mortgage servicer.


Can you get a short sale all the time?

A short sale is most often using when a homeowner is facing foreclosure. If the amount offered by a potential buyer of your house is less than the amount you owe your lender, you can ask the lender to accept the offered amount as payment in full. The lender does not have to agree to accept a short sale. They may elect to go ahead with a foreclosure because of other liens on the property (such as 2nd mortgages.) You can request a short sale by submitting a short sale hardship letter to your lender.


Short sales naked short sales?

A naked short sale refers to the borrowing of securities. In this type of sale, there is no promised three-day delivery to the buyer, like there is in regular exchanges.


If you do a Short Sale in the State of New York do you have to pay back the difference of what you owe after the short Sale?

The state you reside in has nothing to with whether or not you will have to pay back the difference of what you owe in a short sale. Whether or not you have to sign a note and pay back the debt is up to the lender.


How can you sell your house in a short sale and still file bankruptcy?

Bankruptcy is simply having debt beyond what you can pay. A short sale would have nothing to do with it. When you sell short, you leave the deal with nothing. No profit, no cash from the sale. Also, a lender would not even approve the short sale unless they are satisfied that you are 'upside down' each month and have no savings or other assets with which to pay the mortgage.


Can a family member buy a short sale property from another family member?

Can a family member buy a short sale property from a family member


Can lender refuse a short sale?

NO


How do you short sale an automobile?

You can't


Can an LLC buy a HAFA short sale?

Yes. The LLC will need to provide its Certificate of Formation and Operating Agreement to the mortgage servicer reviewing the short sale.