Short Sale

What are Short Sales?

Written by Nyra Smith
Updated over a week ago

What is a Short Sale?

Lenders allow delinquent homeowners to sell their home for less than what they owe. This type of transaction is called a Short Sale because the lender ends up “short” of what they are currently owed. 

In a traditional short sale, the homeowner will receive the offer and submit to the lender for approval; a process that can take months to play out. This creates uncertainty for both buyers and sellers. 

Our Short Sale program is a "lender-approved" program. The lender will approve a sales price prior to auction and a winning bidder can quickly proceed to escrow. The timeline for lender-approved short sale can be dramatically reduced when compared to the traditional Short Sale closing process.

What is the difference between Short Sale and REO?

There are many differences between Short Sale and REO. An REO property is owned by a financial institution, while a Short Sale is still owned by the homeowner (however, the sales price must be approved by the lender). Many REO homes are cash-only, while Short Sales offer the use of financing. There may not be interior access available on REO properties, while Short Sale properties will have access through a Listing Agent. There are rarely Open Houses with REO properties, while Short Sales typically require Listing Agents to hold open houses prior to the auction in order to give potential bidders the opportunity to view the property prior to bidding. 

Why buy a lender-approved Short Sale?

Short Sale sellers that approve a sales price up-front are extremely motivated to sell the properties. They work closely with the homeowner and the Listing Agent to ensure the property is ready for sale. The properties are typically consumer ready and financeable. Once a lender-approved short sale is sold in auction, the sale proceeds immediately to escrow. Closing times can be dramatically shorter with lender-approved short sales when compared to traditional short sales.

Are you an agent that wants to get involved in our lender-approved short sale program?

Apply to be part of our listing agent referral network. If a homeowner that qualifies for the lender-approved Short Sale program does not have a listing agent, they are provided with three potential listing agents to use for their transaction. By applying for our referral network you have the opportunity to be placed into that pool. Standard commissions of up to 6% are honored in this program. Please email or call 866-259-4417 with agent inquiries. 

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