Due to several reasons, the true definition of what a short sale actually is has been confused with several incorrect terms. Here, I am happy to help you with the infamous question
What Is a Short Sale?
But where did the confusion come from? The confusion of a short sale came from three main sources. Firstly, Because the recent boom in real estate investing, a large group of new, less-savy in the hunt for deals tend to categorize shorts sales with any discounted property. Secondly, the housing crisis from 2007 inundated the market with short sale homes that made a short sale home common language. Lastly, those two terms took the short sale process and interjected it with the foreclosure process, which starts before the short sale is even suggested.
First, it is important to understand that “short sale” is a financial term. It is used to define the attempt to sell an asset for less than the asset is worth. We get the term from the bank approving the short sale as they are attempting to sell an asset for less than the note they hold against the asset as collateral. When you understand that, it really makes the rest of the intricacies in shorts make more sense.
Author:John Lewis Phone: 201-855-9377 Dated: December 4th 2018 Views: 426 About John: Specializing in Distressed Properties and Foreclosures, I have been regarded as "the angel realtor."...