What is a Short Sale?

Today's real estate market is a far cry from what it was even just 24 months ago. Terms like REO, bank owned and short sale are the new norm. We've even heard comments like "flat is the new up" and the like.

So, when you're considering investing in real estate today, you'd better brush up on a few of these terms. You can start with a Google search, or you can call your local real estate agent. I prefer clients that do both. : )

Short Sale | If a seller owes more than his home is worth and is trying to "short sale" the property, it means he is selling it for less than he owes. When a lender or investor takes a loss on this property, it is up to that investor to allow the owner to sell for less. This is why short sales require "third party approval." The third party is the bank.

It is often thought that this term refers to the process.....nothing could be further from the truth, because the only thing short about a short sale is the money. These deals take a very long time to close. They often take much longer and have a greater chance of falling apart through the transaction than traditional equity sales. Although, recently, the Obama administration has been encouraging lenders to push these deals through faster...and have even started offering encentives to the lender and the seller on successful closings. It seems to be working. We see more of these deals actually close these days.

As always, feel free to call or email us with questions about the Portland real estate market. We look forward to helping you navigate through the whole process.