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What is a short sale?

What do they mean by a "short Sale" referring to real estate?


Asked by WifeyandMom71 at 12:03 PM on Oct. 5, 2010 in Money & Work

Level 12 (749 Credits)
This question is closed.
Answers (5)
  • It means a bank is selling the house for less than the original owner owes on it. It happens after it has been reposessed. So an owner defaults on the loan, the bank takes the house back and sells it for whatever they can get for it, coming up "short" of what their original investment was.

    Answer by Ati_13 at 12:05 PM on Oct. 5, 2010

  • Actually, this happens before the house is repossessed. After it's repossessed it's a foreclosure. A short sale is when the bank agrees to let the current owner sell the property for less than they owe on it, and not pay the remainder back to the bank. It's better for the homeowner than a foreclosure is, but it can be hard on a buyer. It often takes a long time, and the bank may go back and forth on the deal. Also the current owner may drag it out so that they don't have to pay on their mortgage. It can be a good deal for the seller, and it CAN be a good deal for the buyer if they aren't in a hurry and have a lot of patience.

    Answer by ohwrite at 6:47 PM on Oct. 5, 2010

  • It means that the house is being sold for less than what the owners own on the mortgage.

    Answer by twinsplus2more at 12:48 PM on Oct. 5, 2010

  • ohwrite is absolutely correct!

    Answer by m-avi at 11:19 PM on Oct. 5, 2010

  • Thanks ladies! So, how would i find out what houses are being offered this??

    Comment by WifeyandMom71 (original poster) at 9:48 AM on Oct. 6, 2010