What is a short sale?

A short sale is a real estate transaction in which a homeowner in Iowa sells their home for less than the total amount that is currently owed on the home. It is sometimes referred to as a pre-foreclosure sale. In this instance, the bank or lender that holds the mortgage agrees to accept the lower amount as full payment and forgive any remaining debt on the loan. Short sales in Iowa are generally initiated by the homeowner out of necessity. Perhaps the homeowner has suffered a financial hardship, or the current value of the home is less than the amount still owed on the mortgage. In either case, the homeowner can approach their lender and negotiate to accept a lower payoff amount in exchange for letting the homeowner sell the property and clear the existing loan balance. In two-party short sale transactions involving a buyer and seller, it is important to follow all applicable laws and regulations related to residential real estate in Iowa. This includes utilizing a real estate agent who is licensed to operate in Iowa and making sure the proper forms are signed by both parties. It is also important to stay in touch with the lender throughout the process and ensure that the contract and any other documentation is reviewed and submitted in a timely fashion.

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What is a short sale?

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