A Short Sale is simply when your Bank takes Less than the amount you owe.

Here is an example. Suppose for a certain home:


                   Market Value             300,000

                   - Loan Balance             -317,000

                   - Commission                 -15,000

                  - Closing Costs                   -2,000

=Net Proceeds                    -34,000

In a normal sale, the Seller would have to PAY $34,000 in order to sell their home!

In a short sale, we ask the Bank to accept less money. Instead of 317,000, they would get 317,000 minus 34,000, or 283,000.

Why would they do that?

Banks experience has shown them that in a Foreclosure, they can expect to lose up to 40% of the homes value. A foreclosure in this example might mean a Bank loss of over 100,000.

Often, a Short Sale is a Win Win for the Banker and the Seller !!

A Short Sale is beneficial to both You and the Bank.

It benefits You by saving your credit from foreclosure, but still getting you out of the property.

It may allow you to get new financing later !!

It benefits the Bank by saving them the time and money to foreclose on and then dispose of the property.

Short Sales can be tricky, and should probably be called Long Sales.

The time needed depends on several factors:

* how long it takes to get a reasonable offer

* how long it takes the Bank to approve the offer

* how long it takes for the buyer to execute the purchase.

It is not uncommon for a Short Sale to take 60 - 90 days from the time you get a reasonable offer.