This is one of the most common questions I get asked and the answer surprises many people. Most assume short sale has something to do with the time it takes to buy a home but these deals often take longer than a typical transaction.
In this case, “short” refers to the amount of money the lender will recoup from the sale of the house. A short sale is a transaction, approved by the mortgage company, in which the lender will accept less than what is owed on the house. While a short sale will be reflected on the seller’s credit report, it usually looks better than a foreclosure.
For buyers, short sales can sometimes mean a good deal. However, lenders are often slow to move on these transactions and may not accept offers that have contingencies attached (i.e. the sale of another home). Buyers with cash to invest are best situated to take advantage of short sales and foreclosures. We continue to see a number of short sales in the Nashville real estate market.
If you are interested in buying, whether a short sale or not, give me a call at 615-504-7425 or email me. Also, I welcome other questions I can answer online.