A short sale actually means that the money offered is short of what is owed. We sold our home as a short sale, the bank got less than half of what we owed. I lost my job, and we could no longer afford it. We had 2 mortgages. We had a great realtor. He did mountains of paperwork, mostly negotiating with the banks for both mortgages. We had to write a letter to the banks explaining why we couldn't continue payments. Then (and this is the hard part) we had to find a buyer who made an offer below what we owed (making the sale "short") that would be approved by the bank. It took forever, longer than a regular escrow, since the bank had to eventually agree to a lesser amount. So, in short, (ha ha) to qualify for a short sale, you have to show financial burden for continuing your regular mortgage payment.
at 5:35 PM on Jul. 25, 2010