Short Sale Clarified

The simple definition of a short sale is:

When a borrower owes an amount on his property that combined with closing costs and commissions is more than the value of the home.

A short sale occurs when a borrower negotiates with his/her bank to sell the home for less than the amount owed on the home. When the home is purchased by another buyer it is considered 'sold short'.

This process is very involved even though the definition is so simple. If you recall your first real estate transaction and all the paperwork that was involved, a short sale is a similar process but requires a keen negotiator.

I can't begin to tell you how many inexperienced Realtors are out there that have no idea how to handle a complex transaction like a short sale. If you are not working with a Realtor with the 'Certified Distress Property Expert' designation you could be losing money.

Since the bank is paying the commission, wouldn't you want to hire the best Realtor?

J.D.A.