What Is A Short Sale, Define A Short Sale
What Is A Short Sale?
What Is a Short Sale?
A short sale is the name used to describe a real estate transaction where the seller's lender(s) agree to allow the property owner to sell the property for less than the amount of the loan(s) secured by the property.
The consent of the seller's lender(s) is necessary because without it there would not be enough money from the sale to pay off the lender(s) in full and to pay other costs of the sale. As a result, the lender's lien(s) would remain on title, and the seller would be unable to transfer title to the buyer free of monetary liens.
Properties that are worth less than the amount owed to the secured lender(s) are often referred to as being "underwater" or distressed properties.
