What is a short sale?

When I'm visiting with people here in Aurora,the question that I am asked most often isn't "What is a short sale?" but "Why do they call it a short sale when it takes so long?" The answer to that starts with the term "short". When we hear the word short we usually think of time or length. In this case it's neither. Think about how your bank account is at the end of the Christmas season, you very likely feel a little "short" on cash right? Well, that's what they mean here too. The person selling the house is asking the bank to accept a shortage on what is owed. So when you think about it that way it make a little more sense as to why it take so long. Once an offer has been submitted to the bank, they then have to look over everything and carefully weigh how much money they are willing to lose, or if they want to take the house back and try to sell it for more themselves. If you or someone you know is behind in their mortgage, and lets face it, most of us do. The first thing that should be done is to contact the bank and see if they would accept a modification of the loan. If they will, then keep the new payments current or even a little early. If that doesn't work, then the next step would be talking to a professional about a short sale. Many agents will work with a short sale, but few of us are certified to work with them. This certification means that we have taken extra training and know all of the ins and outs of what the bank is going to be asking for and looking at. If you'd like more information on this, please visit my site www.shortsalesinaurora.com for a free report that I have prepared especially for you.
Devin Bewley
CDPE, REALTOR
www.shortsalesinaurora.com