Short Sales are properties that are for sale where the lender has or has not approved the sale of that property at below the homeowner’s current loan amount.
An example: the current homeowner has a loan amount of $650,000. Yet the market value and the appraised value of that home is $450,000. The lender will allow the seller to sell the home at market and appraised value.
One of the most important aspects of a Short Sale is whether the lender has approved the Short Sale or not. The lender decides whether to approve the Short Sale based on the sellers/owners financial circumstances. The owner has to prove hardship, typically that means that they are unable to afford to maintain the current payments, taxes, insurance and / or HOA fees of that home.
