What Do The Mean By A Short Sale

What does Pending - Short Sale mean?

Pending = Sale pending....to you that means the property has an accepted offer.

Short Sale = Sale is subject to lender approval. They offer may not be approved after all is said and done. The seller may not qualify to do a short sale. The lender may not like the offer. The investor may say no. A large percentage of short sales do not close because there are so many factors to be considered. Depending on whether or not there was mortgage insurance on the seller's loan will also be a determining factor. Bottom line....if the bank makes more money by foreclosing, they will ultimately never approve the short sale. Unfortunately that means buyers, sellers and agents get dragged thru the mill for nothing.

Best thing for you to do is to hire a Realtor to represent you in the purchase of your home so you don't make any mistakes.

Buying a home is an adventure!!! I wish you all the BEST!!

What does "Active short sale mean"?

nicholas has some very good points in his response.

active short sale means that the property is active (available) and is being offered as a short sale (meaning that the offer price is less that what is owed on the property and the bank will have to approved the purchase contract).

i wouldn't show short sale listing in the past because it would take too long to negotiate with the bank and finally get an answer...usually no. the market has changed and i love to go after the short sales. but you have to be able to negotiate with the banks and most realtors are not trained for that type of purchase so they stay away from them. it also take a lot more work for short sale negotiations that a regular purchase and the realtor doesn't get paid any more...often they get paid less. so there isn't much incentive for them to go after the short sales, unless you're planning on being a repeat buyer.

when making offers on short sales you need to keep in mind that the price is only what the agent and the seller have decided on but not necessarily what the bank will accept (you have to start somewhere). usually a bank will want a BPO (or an appraisal) to determine the property value and then they shoot for something within 15% of that market value. so 20-30 less than asking price may be good on one property but not on another. you'll need to do your homework and have a good idea of value before you make an offer.

and finally, when you submit an offer you should also plan on submitting justification for your offer price (in the form of a cma or show other comparable data for homes selling in the neighborhood). next comes the waiting game with the banks; right now they are overloaded and don't have the workers to handle all the files so it may take some time. if you have a housing deadline then you'll need to look at something else besides a short sale. good luck.

Can anyone explain in simple terms what "short sale" means in terms of foreclosure?

A short sale in real estate is when a current owner of a house, with the assistance of a real estate agent, submit a document to the lender requesting that the house offered as collateral on a mortgage loan be sold for less than the mortgage loan amount.

This is a request and may or may not be approved by the lender. Each lender has it's own criteria and time line for approving or disapproving a short sale.

A short sale can cause a negative on your credit report for several years.

With the approval of the short sale the bank is agreeing to write off the balance of the mortgage loan, therefore any loss during the sale should not reflect on you. Most lenders will not file a deficiency judgment against you.

Depending on what state you reside in if you allow the property go through the complete foreclosure procedure then the lender under state law could legally be allowed to come after you for a deficiency judgment. Most deficiency judgments are allowed in states that allow the judicial foreclosure procedure.

Even though lender are legally allowed to pursue you for a deficiency judgment in states that use the judicial foreclosure procedure, still most will not.

Doing so would tie the lender and the property up in court in order to obtain the deficient judgment which might or not be collectible, based on the fact that the borrower could file bankruptcy or insolvency, therefore, all the money and time spent by the lender would have been fruitless. Then the judge could deny the deficiency judgment.

What most lenders will do is send you a 1099 indicating that you had a gain from the foreclosure procedure. This is because the lender has determined that they had a loss, therefore the IRS has determined that if one party had a loss, someone in the procedure had to have had a gain. That person is you.

You would have to file this gain on your current year federal taxes.

For tax and legal matters you should always consult with you income tax consultant and attorney.


I hope this has been of some benefit to you, good luck.


"FIGHT ON"

For a short sale, what do they mean as Proof of Income?

They will generally want any W-2's for the last 2 years, copies of your last 2 years of taxes, and copies of your last 2 months bank statements. Given your SSI payment, they'll probably want some record of that, like a copy of your monthly check or statement. They will also want a statement of your monthly income and expenses. They will often have their own form to fill out, but they will accept general forms for capturing all of that. Those forms and all others needed in a short sale are available at http://www.theshortsalegoods.com in The Complete Short Sale System.

What does SHORT SELLING stocks mean????

Short selling is the selling of a stock that the seller doesn't own. More specifically, a short sale is the sale of a security that isn't owned by the seller, but that is promised to be delivered. That may sound confusing, but it's actually a simple concept.