What is a short sale?

Short sales occur when property values have dropped, and the homeowner is unable to sell the property for enough to pay off the debt owed.  A short sale is when a lender allows the homeowner to sell the home for less than what is owed on the mortgage note.  Typically, a lender would rather pursue a short sale and lose less money, as opposed to taking the property back through foreclosure.

FOR BUYERS: Advantages of a short sale

• A buyer may have an opportunity to purchase a property below current market value (Not guaranteed).  Most lenders require at least 90% of the current market value for the home, so buyers have a chance to purchase a property at a discount of up to 10%.

• The condition of the home…