What is a short sale?
Before making an offer on a short sale, there are several considerations you may want to take into account.
If a property is being sold for less than what the current owner owes the bank on the property, and the seller does not have funds to make up the difference at closing, the sale is considered a “short sale”. A short sale is different from foreclosure, which occurs when a seller’s lender takes back the title of the home and lists that home for sale. While a short sale can often be purchased at below market value resulting in a good deal for a buyer, a short sale also holds many potential hurdles for buyers to overcome.
Answering a few questions will help you determine if a short sale purchase is right for you.