What is a Short Sale?

By definition a short sale is literally the sale of a home for less money than is currently owed the lender on the outstanding mortgage being foreclosed on, also known as a pre-foreclosure sale. In other words the home is “upside down“ from a financial aspect. Therefore in order to successfully conduct a short sale, the foreclosing lender has to agree to it, essentially agreeing to accept less money than is owed on the loan secured by the house.

Purchasing a Short Sale

When considering the purchase of a short sale it is advisable to seek the assistance of a real estate professional who is well versed in short sales. Not all real estate brokers or sales agents know how to conduct a short sale or how to work with lenders in negotiating one. With the assistance of a real estate agent experienced in this type of purchase you can negotiate a favorable price for both the owner and the lender, and you as a buyer stand to make a good profit. The Cotten Team specializes in listing short sales as well as assisting buyers in the purchase of one. They will explain to you the reasons why a short sale typically sells for less than other properties.