SHORTSALES

What is a Short Sale Property?

A short sale occurs when a home owner is in foreclosure but before the property goes to public auction. Under a
short sale, a lender must agree to accept less than the amount that is owed on the property.

Unlike a foreclosure, investors typically buy the home for even less because investors are not paying off the
existing loan nor making up the back payments. Investors are striking a deal with the existing lender to take less
than what the lender has coming to avoid dealing with a foreclosure.

It's a myth that lenders are not going to make a deal with an investor unless the seller has fallen behind on the
seller's obligation to make timely mortgage payments. Sellers don't need to be in default for a short sale to occur.
For a buyer who wants to occupy the home, buying a short sale makes financial sense.