A Short Sale is when a home is sold for less than the amount to cover the existing loan. Why would a bank allow such a thing to occur? It is usually less expensive to do this than for the bank to foreclose on the property and market it for sale.
There are some interesting twists in the Short Sale process. First of all, the name. I believe these sales should be referred to as "Long" sales. They usually take much, much longer to close than an ordinary resale. I have seen a short sale close in as little as 6 weeks and as long as more than a year. It depends on how well the paperwork is handled and the individual bank.
If you are looking to sell your home as a short sale, you must meet specific requirements or the bank will simply refuse to honor your sale.
If you are looking to buy a short sale, know that you will need a longer time frame for this to work.
Either way, if you are looking to buy or sell a short sale home, contact me to receive my Short Sale booklet that details everything you need to know before proceeding.