Zillow Advice: Buying a Foreclosure - how does a short sale work? http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ Zillow Advice | Zillow Real Estate With short sales, the owner ... http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ With short sales, the owner owes more on the home than he can sell it for. For example, the Seller owes $150K on his home. &nbsp;However, the market value for the home is $125K, not including realtor commission. &nbsp;The bank will have to agree to sell the home for less than the mortgage amount. &nbsp;The Seller must prove hardship and there are some other stipulations from the bank which is why there is always an attorney involved. &nbsp;Do you need to sell your home as a short sale or are you interested in buying? Wed, 05 Dec 2012 17:50:00 GMT http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ 2012-12-05T17:50:00Z When the value of homes drops, ... http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ When the value of homes drops, and the loan amount is greater than what the house worth and the homeowners decide to sell, that is when the sale will be considered short sale. The sellers will list their house with a real estate agent for a&nbsp;fair maket value, once they receive a good offer, the sellers accept it and the agent opens escrow and start negotiating the bank to get it approved. It takes between 45 and 60 days for approval if it is a smooth negotiation. Once the bank issue the short sale letter then buyers can close escrow. Wed, 05 Dec 2012 21:06:00 GMT http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ 2012-12-05T21:06:00Z By definition - a short sale ... http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ By definition - a short sale occurs&nbsp;when a homeowner sells their home for less than they owe due to market values falling short of a full payoff on their outstanding mortgage loan balance. The transaction must be negotiated with all lien holders&nbsp;- not simply a mortgage holder, but perhaps an HOA, a tax lien or even&nbsp;personal lien/judgment. All lien holders must relinquish their interest in the property and agree to settle for less than the full balance owed to them - hence the sale is "short" of a full pay off. <br/><br/>Contrary to popular opinion, it is not necessary to be behind in your mortgage payments for your lender/lienholders to consider short sale negotiations, although special circumstances like divorce, loss of job/income, relocation, death of family member, etc. are qualifying events that are&nbsp;needed for consideration.<br/><br/>If you are a homeowner - Are you considering a short sale? or Do you know of someone that is? <br/><br/>If you are a buyer - Short sales often take longer than traditional sales to close because of the time necessary to negotiate between lienholders. It is best to determine if the sellers' hardship is verifiable and if their initial short sale financial package has been submitted/reviewed in order to gauge the likelihood that the short sale will be granted and approximately how long you may need to be in limbo before you can purchase the property.<br/><br/>Either way, it is best to be represented by an agent experienced&nbsp;with and successful in negotiating short sales before you sell or consider buying. Wed, 05 Dec 2012 20:10:00 GMT http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ 2012-12-05T20:10:00Z Linda is correct.&nbsp; An ... http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ Linda is correct.&nbsp; An additional item a buyer needs to understand is that when the lender finally reviews the short sale - they may want to renegotiate the deal! So informed buyers, with patience, may prevail in obtaining a home at a discount... Wed, 05 Dec 2012 19:53:00 GMT http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ 2012-12-05T19:53:00Z Linda is right on, but my ... http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ Linda is right on, but my first thought when I read this question....<br/><br/>SLOW. Wed, 05 Dec 2012 19:48:00 GMT http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ 2012-12-05T19:48:00Z We get asked this everyday. ... http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ We get asked this everyday. There is a lot of info on the internet about it and how it works. It is slow, frustrating and not at all predictable. It could take a month to many months to never happening at all.<br/><br/>http://en.wikipedia.org/wiki/Short_sale_%28real_estate%29 Wed, 05 Dec 2012 17:48:00 GMT http://www.zillow.com/advice-thread/how-does-a-short-sale-work/470453/ 2012-12-05T17:48:00Z