What does "Short sale" mean?

A short sale can be good for buyers as it often results in a lower purchase price compared to market value, potentially saving them thousands of dollars. However, buyers should be aware that the process can be lengthy, taking several months to complete, and properties may be sold "as-is," requiring additional investment for repairs.

Lenders accept short sales to avoid the costly and lengthy foreclosure process. Foreclosure can result in significant losses for the lender, often exceeding 20% of the property's value. By agreeing to a short sale, lenders recover a portion of the owed amount, reducing their overall losses.

Lenders accept short sale offers approximately 50% to 60% of the time. Acceptance often depends on the homeowner's financial situation, the property's market value, and how well the short sale proposal is presented.