Short Sale Defined

There is a lot of buzz in the real estate community about short sales. Many people fail to understand what the true meaning of a short sale is. Here is the definition as defined by REBAC (The Real Estate Buyer Agent Council).

A short sale occurs when the net proceeds from the sale of a home are not enough to cover the seller's mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate commission, and the seller is unable or unwilling to cover the difference.

If the seller wants to proceed with the sale of his/her home, he/she will need to aquire approval from any bank that has loaned him/her money on that property.