Tell me...What is a Short Sale?First of all - unlike its name...it ISN'T short. It can and probably will take several months 3-5 is the current average. The 'short' refers to the fact that when there isn't enough equity or ANY equity in a home sellers can ask the existing lender(s) to accept an amount "Short" or less than the amount owed to allow the property to be sold. Almost always -a lender would rather accept a settlement today with a Short Sale than proceed to a foreclosure. Why? Lenders accept short sale pay-off nearly the full value of the property and if they foreclose...which can take months and legal fees, they are then on the hook for all the same expenses they have agreed to pay for the short sale but now need to carry the home for many months if not years in a declining market. Even when the lender finally has the freedom to sell a foreclosed property, they must pay nearly all of the same fees and expenses they would have incurred on the short sale but the property may be worth less.
Learn more about short sales here.