A short sale occurs when a property sells for a price that is insufficient to pay back the loan or loans secured against it(or any other liens the property, such as delinquent property taxes, Homeowners /Condo Association Fees etc.) as well as standard sales closing cost. In such a case , in order to complete the sale, the Seller, must either:(1) comes to the closing with sufficient funds from other sources to cover these shortfalls; or (2)the Lender(s) must agree to forgive all or a portion of the amounts they are "Short" or make other arrangements for repayment ( such as execution of a promissory note.) The second alternative is commonly known as a Short Sale. The Sellers lender generally not allow the Seller to receive any proceeds or otherwise obtain any monetary benefits as part of a SHORT SALE.

 Is a Short Sale a Better Deal than other Properties ?

  Buying a property through a Short Sale may be a Good Deal, but that is not always the case. First, there is no assurance that the Seller will obtain approval of the Sale from the Lender. Each Lender has its own requirements to qualify. Most Lenders will allow the Seller to pay for repairs or credit money to the Buyer for repairs, and as such, your best and perhaps only opportunity to purchase a Short Sale will be on an AS-IS with Right to Inspect Basis ( which allows you to inspect the property and cancel the contract if repairs are beyond what you would like to pay) Also Lenders will typically not allow closing cost and other credits to be given to the Buyer on a Short Sale. While you may consider purchasing a property that is subject to a Short Sale approval, there may be other properties available through a traditional transaction which you may find  Better Fits you and your family needs.

How Long Will It Take To Get A Short Sale Approved ?

Every Short Sale situation is different and depends on many different factors such as Sellers individual circumstances, the nature of the loans and other liens against the Property,and the Sellers Lenders criteria and staffing. Many Lenders will not even begin a review a Sellers request until a contract for Sale has been Executed, which may further delay the process. In addition, lenders will require the Seller to Provide detailed financial information and my also preform appraisals of the property to determine weather it is in fact worth less than the outstanding mortgage amount. While some Lenders are able to review Short Sale Request quicker than others, many lenders take at least 5-9 Weeks, If not longer...

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