A short sale is an approved “discounted loan payoff”.
Simply put: Through your negotiations, you get the bank to accept less than what is owed as payment on a property, “a discounted payoff”.
Example of a Short Sale:
The market price of house is : $125,000 (There is no equity in the house)
Loan payoff of the house is : $125,000
Marketing fees to sell the house: $7,500
Repairs needed to sell house : $15,000
The house will not sell at $147,500
Who is involved in A Short Sales?
Homeowner - wanting to get out of foreclosure
Lender – who wants to get bad debt off its books
Buyer – who wants a property to fix-up with equity.
WIN / WIN / WIN – for all three
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