What is a short sale? Short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. As well as when the mortgage balance owed is higher than the market Value of the home.
I'm asked that a few times a week. What is a short sale? And, every time I hear "Short Sale", I cringe, on. account of, the procedure is a stressful blend of dysfunctional bank departments with no meaningful system for accomplishing the task of unloading the non performing assets.
We have to hold back until the industry gets its act together to create a comprehensively acceptable process. However, for now, it will go ahead to experience struggles and changes with regards to individual transactions. I have seen very easy and timely short sales and some ending in a disaster, with no reason for its disparity. Also, it's true that the financial institutions are neither smart nor logical in their response to this present wave of distressed sales. It pleads for accepted enforcement and supervision from the source of the bank's life line. The federal government and with consideration to the taxpayers/borrowers will keep feeding beast.