James Valenti, Realtor

Short Sales

The term "Short Sale" means that the sale of a property will produce proceeds that are "Short" of paying off the liens against it.  If an owner is going to sell short and will not be bringing money to the closing to cover the short amount they can request that the lien holders approve a "Short Sale".  Lien holders may agree to allow the sale of the property without full payment.  The "Short" amount can be addressed in a number of ways.

The process for short sale approval can take several months.  Anyone buying a short sale should be prepared to wait several months for a response from lien holders and understand that the terms in the contract may be changed by the lien holders.

Short sales are often referred to as "Pre-Foreclosure" as many of the owners applying for a short sale are in arrears on their accounts and lien holders have begun the foreclosure process.  The bank has not foreclosed at this point and the owners of the home are the sellers of the property, not the bank.