A short sale is a transaction in which the Seller is selling a property at a price lower than the amount he/she owes the bank. The bank is the ultimate decision maker. In fact, given that the bank will be faced with a lost, it will decide if the price is adequate or not.
Prior to embarking on a short sale process, the bank might attempt to find a resolution with the seller and look for justification for the for a short sale.
The bank can elect to approve or not approve the short sale. Once approved, the bank then assess the value of the property and decide on an adequate sale price.
The entire process can take up to 1 year, however it can be accomplished quickly as well.
Short sales can provide fantastic opportunities. However, one must be equipped with patience and flexibility.
