What Is A Short Sale On A Home Mean

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If you’re in the market for a new home, a short sale can provide a nice home for an even nicer price. Short sales have a well-earned reputation for being lengthy, however. If you’re interested in purchasing a home through a short sale, prepare yourself for a long wait between making an offer and closing the deal.

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Ask the Mortgage Broker:  What's A Short Sale? A short sale is an arrangement between a borrower and lender through which the borrower sells the property to a third party, and the bank settles the debt for less than the total outstanding principal balance. The bank is shorted the actual debt..

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A short sale is a home that is available at a purchase price that is less than the amount owed by its current owner.

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Pre Approval Process Mortgage For one, a seller might be inclined to accept a slightly lower offer if it comes backed by a solid pre-approval. This is especially important when a competing offer comes from a buyer who hasn’t yet.

Definition: A short sale typically has two meanings.In real estate, it means selling a house for less than the outstanding mortgage. In investing, a short sale is a strategy in which an investor takes a short position in borrowed shares, expecting the market price to decline before maturity to realize a profit.

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A short sale is a very complicated real estate transaction and one that has very important implications for you. More than any other type of residential real estate transaction, a short sale should be handled only by a real estate broker who has substantial experience with the short sale process , and a strong track-record of success in.

Short sales are known for taking more time than usual to complete, so it’s a good idea to do everything you can on your end. Your lender and real estate agent should be very familiar with short sales, and they can help you understand all the steps you need to take for the short sale transaction.

What Is A Short Sale? A short sale occurs when the proceeds from a sale are BELOW the outstanding loan obligations on a home. Essentially, in a short sale, you may fulfill your debt obligation by selling your property for less than what you owe to your lender(s).