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). But not all creditors will accept a short sale or discounted payoffs, especially if it would make more financial sense to foreclose. Furthermore, not all properties nor all sellers qualify for a Short Sale.

If you are looking to sell or buy a property that is considered a short sale, first download our white paper on "Understanding Short Sales" (pdf), then contact one of Dickson Realty’s Short Sale experts.

Short Sale Resources

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