What it is:
In a short sale, the property is being sold for less than the debt secured by the property. Short sales will require the approval of the seller’s lender(s) as the proceeds of the sale will be just "short" of the amount owed; most lenders' processes of approving short sales is long and drawn out, requiring more time to close than a traditional sale.
What to know:
- Lender(s) will need to approve all aspects of the sale
- Lender review process is lengthy, often lasting more than three times as long as a standard sale
- It is possible that after months of review, your offer will ultimately be declined, and you will have to begin your search anew.