What Is It?
Are you upside down in your mortgage? A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished. A short sale occurs when a lender agrees to accept less than the full balance of the amount owed in order to release their lien on real property. Short sales occur when buyers purchase real property for less than the outstanding mortgage loan balance. Buyers enjoy the benefits of excellent selling prices and, often, willing lenders, who have already agreed with sellers to accept a short sale in lieu of foreclosure
Who Is It For?
Short sales have become a popular solution for homeowners who wish to sell their property but owe their lender(s) more than their home is worth.
Is A Short Sale the Same as a Foreclosure?
A pre-foreclosure is a property in the process of foreclosure but is still legally owned by the owner. It may or may not be a short sale. A short sale is when an owner is selling a home worth less than the mortgage owed on the home. Lenders may agree to take a short on the mortgage to release it for sale.
How Long Does it Take to do a Short Sale?
The short sale process, from submission to short sale approval, is generally as follows: Submission of offer and complete short sale package from the seller. Bank acknowledges receipt — 10 to 30 days. Bank orders a BPO or appraisal — 2 weeks to 2 months.
What is a BPO When it Applies to a Short Sale?
A broker’s price opinion is the process used by a hired sales agent to determine the potential selling price or estimated value of a real estate property. A BPO is popularly used in situations where a financial institution believes the expense and delay of an appraisal is unnecessary. (More about an BPO here) Once the lender owns it, it is referred to as REO (Real Estate Owned).