I thought about this as a topic for an article because my husband had a buyer make an offer recently on a “Short Sale” property that turned into an interesting scenario. Randy (my husband) prepared his client for the short sale process, i.e.: the length of time the transaction could take, that you must have a strong offer going to the bank, that you must be prepared to act quickly and so on. This deal wouldn’t end up being a short sale because the property would sell for more than the loan. The owner who had let his property go into default would now walk away with cash. This brings up the questions about how someone (and their broker) could not know what defines a short sale, and would allow this to happen.
With that in mind I thought I would let you test your knowledge and clear up some of the misconceptions about short sales.
So let’s see how much you know or don’t know.
What is a short sale?
When a property sells for less than its current market value
When a listing sells for below the amount the seller owes on the mortgage
When a listing is sold in a short amount of time
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