A short sale is when a homeowner is selling a home for less than what is owed. The lender has to approve a short sale because they are taking a loss on the loan.
For the homeowner, they typically have to have a hardship that no longer allows them to make their payments (loss of a job, etc.). The bank will often agree to a short sale because taking the property through foreclosure is likely to take more time and cost more money.
Short sales present a great buying opportunity but also many challenges. If you have questions about a specific short sale you can contact us.