“What is a short sale?” – Jenny of Issaquah, WA
A short sale is a type of sale where the homeowner has fallen behind on their mortgage and is facing foreclosure. Rather than taking a full foreclosure on the homeowner’s credit score if the lender approves, the current owner can sell the home for less than is owed on the mortgage. While this sounds ideal for an investor, there are many caveats to purchasing a short sale. Since a short sale involves those owed agreeing to receive less than the amount they are owed, short sale transactions can take a long time and often fail.