What is a Short Sale?
A short sale or short payoff is generally defined
as a sale in which a lender allows the property
securing a mortgage or deed of trust to be sold
for less then the existing loan balance, due to
factors such as the borrower’s financial circumstances,
the property’s physical condition, or
local real estate market conditions.
A short sale is really a form of pre-foreclosure
sale that occurs when the mortgagee agrees
to accept less than the loan amount to avoid
foreclosure. A negotiated short sale may result
in a discounted purchase price for the buyer.
The buyer then finances the acquisition much
the same as in any conventional real estate
acquisition.

Courtesy of Land Title Guarantee Company

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Complexity of Short Sales
Short sales are extremely complex transactions,
even for the experienced Realtor. Part
of the reason is that they are time-consuming.
Lenders are inundated with requests for short
sales and therefore expect all paperwork to be
complete and accurate before even considering
a short sale. Lenders may also request that
the paperwork be resubmitted multiple times,
and just getting the file itself to the lender can
sometimes present a challange.
Additionally, there is no regulation or industry
standard for short sales, meaning every lender
may have different requirements and expectations.
Even a Realtor who is familiar with the
requirements of one lender may not know the
ins and outs of another lender’s requirements.
Furthermore, lenders’ policies and processes
can change often and even vary by investor.

Courtesy of Land Title

John Marcotte

www.boulderhomes4u.com

720-771-9401