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The Basics of a "Short Sale"
As a professional in the real estate industry, I have had a lot friends and clients ask me to explain the term "short sale" lately.  A short sale used to be something that was primarily only used by seasoned investors as a technique to get a lower purchase price from a seller by offering to negotiate the difference directly with their lender.  Now, with so many home-owners in trouble on their mortgages and having to sell in a market that is perhaps far less than what they purchased for, they are becoming very common.
So here are the basics of a SHORT SALE if you are still wondering:
1.  What is a Short Sale?  A "short sale" occurs when a home is sold and the lender(s) for the seller agree to take a pay-off that is less than what the borrower/seller owes them.  Example:  Joe owes ABC Bank $350,000 on his home, he sells the home for $345,000, after closing costs he NET's $320,000 and ABC Bank agrees to take a 30K loss by accepting 320K instead of 350K at closing and releasing their lien on the home so that the purchaser can obtain free & clear title to the property
2.  Is a seller still obligated to pay back the short ... more

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