Short Sale (Real Estate)Understanding a Short Sale (Real Estate) A short sale in real estate involves selling a home for less than the balance remaining on the mortgage.Special Considerations. …Short Sale vs. …Short Sale Alternatives. …Details of a Short Sale. …Short Sale Strategies for Buyers and Investors. …It All in the Numbers. …The Bottom Line. …
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How does a short sale work in real estate?
The owner is obligated to sell their home to a third party, while the proceeds of the sale go to the lender. The lender must approve the short sale before it happens.
What is’short sale (real estate)’?
What is ‘Short Sale (Real Estate)’. A short sale in real estate is when a financially distressed homeowner sells his or her property for less than the amount due on the mortgage. The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender.
What percentage of home sales are short sales?
According to recent data from real estate information company RealtyTrac, about 5% of all single-family home and condo sales are short sales. Often homeowners are pushed into a short sale by personal financial troubles that make it impossible to pay their monthly mortgage to their lender.
Where can I find a list of short sale properties?
Most short-sale properties are listed by real estate agents and on real estate websites. Some listings may not be advertised as short sales, so you might have to look for clues within the listing, such as being subject to bank approval or giving the bank time to respond. 1