What Is A Short Sale

Dated: 12/04/2018

Views: 396

Due to several reasons, the true definition of what a short sale actually is has been confused with several incorrect terms. Here, I am happy to help you with the infamous question

What Is a Short Sale?

Confusion

But where did the confusion come from? The confusion of a short sale came from three main sources. Firstly, Because the recent boom in real estate investing, a large group of new, less-savy in the hunt for deals tend to categorize shorts sales with any discounted property. Secondly, the housing crisis from 2007 inundated the market with short sale homes that made a short sale home common language. Lastly, those two terms took the short sale process and interjected it with the foreclosure process, which starts before the short sale is even suggested.

Definition

First, it is important to understand that “short sale” is a financial term. It is used to define the attempt to sell an asset for less than the asset is worth. We get the term from the bank approving the short sale as they are attempting to sell an asset  for less than the note they hold against the asset as collateral. When you understand that, it really makes the rest of the intricacies in shorts make more sense.

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John Lewis

Specializing in Distressed Properties and Foreclosures, I have been regarded as "the angel realtor." Before getting licensed I have been investing real estate. Also, I have been on both sides of th....

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