The Short of It.. Definition of a “short sale”

203180475_thumbnail1 As a Realtor in business for over 10 years I have never experienced a real estate market like today. It really  is like a roller coaster. For those of you unfamiliar with Short Sales and Foreclosures, I want to take time out to give you definitions of both.

Short Sales Defined: The term “Short Sale” is used in the real estate business to describe a situation where there is more debt owed against a property than the property is worth. In other words, the owner cannot sell the property unless the creditor (“Third Party”) agrees to accept payment that is less or (“Short”) of the amount actually owed to those Third Parties. These third parties are usually banks, mortgage issuers, or investors.

Foreclosure: The term “Foreclosure” is the legal process by which the owner’s rights to the property have been terminated because of default on their mortgage and the lender has taken back the property after the sherriff sale auction.

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