What is a Short Sale?

The term short sale is used in the real estate business when there is more debt owed on the property than the property is worth. Currently in our region, bank-owned properties are affecting home values in some of our neighborhoods. In a short sale, the owner can’t sell their property unless creditors (third parties) agree to accept a pay off that is less (or short) of the amounts that are actually owned to those third parties. Examples of third parties are mortgage lenders, mortgage insurers, bankruptcy trustees and federal, state and local tax authorities (such as the IRS or state tax commission).

If you are looking to buy or sell a property that is considered a “short sale”, view our video The Truth about Short Sales, created by the Dickson Realty short sale experts.