FAQ
Each and every question below was submitted by a real estate agent, short sale negotiators or website visitors. These questions will help you understand what a short sale is, how you complete a short sale and more. If you do not see a specific question please fill out the form below and we will post your question & answer. You may also find some useful information and video’s on our Short Sale Blog.
What is a short sale (formerly known as short pay off)?
A Short Sale is the sale of a property for less than what the borrower owes to the bank. In this type of sale, the lender will accept less than the face value of the note, and, in many cases, forgive the remaining debt. Many lenders would much rather accept a short sale than foreclose on the property and incur the costs associated with foreclosure. Foreclosure is a time consuming and costly process that banks and lending institutions would prefer to avoid.
It is best to begin the short sale process as soon as possible. Since a foreclosure usually takes approximately 7 months to complete from the date of the first missed mortgage payment, it is best to try and list the property once a borrower cannot afford to make the payments any longer. This gives the agent a minimum of 7 months in order to complete the short sale transaction.
