WHAT IS A "SHORT SALE"?
First, let's discuss some definitions: a Short Sale is a negotiation where the mortgage amount you owe on your Home is "Shorted". When the property is sold the Lender agrees to receive less than what is owed to them.
Second, to begin a Short Sale the seller must have a "HARDSHIP". A hardship may be late payments or an inability to pay the mortgage. However, a foreclosure is not the only reason for a hardship. A hardship may be due to divorce, death, loss of job, or for an illness. In FLORIDA, the hardship is the MARKET itself. Property simply is not worth the amount you originally paid for it AND it is not selling TODAY.
The Florida Market is the Hardship and Short Sales may be started regardless if the Seller is behind in Payments.
I will be speaking at the RAGFL/EAST on April 21, 1:30pm to 4:30pm and at the RAGFL/WEST on April 24, 1:30 to 4:30 pm on this subject. The session is no-cost for all RAGFL members. Link to www.r-world.com to reserve your seat. The Session will include an expert panel Q&A time.