Short Sell Question

[hinestro]

Hello,

If you see a listing that states motivated seller..possibly short sale.  What exactly do you think that means?

Thanks

[yunghova]

a short sell is when u deal wiht someone in PRE forclouser, if there listed they may not be in that situation.

a motivated saler is a seller ou want if your an investor

[hinestro]

Thanks,  I wasn't exactly sure what they meant by short sell.

[Misscee52]

It is possible to do a wrap around morgage on a short sell property

[campbellsimon]

A short sale is a pre-foreclosure property where the owner expects to sell the property for less than what is owed on the mortgage.

Usually these sellers are highly motivated because the bank will only allow a limited amount of time for the owner/borrower to sell the property before they schedule it for auction.

Unfortunately, short sales are extremely long transactions (average of 4 - 6 months to close) and have a high rate of transaction failure. That being said, you can often find below market deals.

[kelle711]

A "short sell" is what you get when you mean to type "short sale" buy you are typing on a device that auto-finishes your words. Or if English is not your first language.

As has been mentioned, a short sale is where the bank agrees to take less than the mortgage payoff to release the lien on the property. Typically, short sale homes sell for a discount off Fair Market Value. However, in my market (DC Metro Area), I am seeing more banks approve short sales at Fair Market Value (sometimes more) or they will just foreclose on the house.