Short Sale

What is a short sale?  

A short sale means that there is more owed on a property than its current market value or marketability.  The record title holder (the owner of the property) and the lender or lenders are willing to take a payoff amount less than the current outstanding balance, which can   include principal and interest and other lender charges, such as late fees, pre-payment penalties, escrow advances or other fees incurred by the lender to protect the property (which is usually their only security for the original loan).  

Many times these properties are in foreclosure (meaning a lawsuit has been filed,  or referred to as during foreclosure) which contributes greatly to the cost.  Or the loans are delinquent loans but not filed in foreclosure (referred to as pre-foreclosure).  

Obviously you want to get involved as early as possible because of the timing. 

Once a loan becomes delinquent, a process is started and the expense clock starts to run. 

We teach this in our courses--PRE-FORECLOSURE--DURING FORECLOSURE--AND POST FORECLOSURE:  PDP.

The Owners and usually any 2nd lien holders will not realize any money from the sale. The owner, if the property is their homestead, may possibly realize significant tax benefits even though they will usually receive no cash at closing. 


This real estate phenomena has created a bonanza for Realtors and Investors to CASH IN on the thousands of Short Sales,  and Foreclosures being sold at Auction.