What is a short sale?

A short sale is a type of residential real estate transaction in which the homeowner is selling their home for less than what they owe on the mortgage loan. This can happen when a homeowner has fallen behind on their payments and their mortgage loan is in default. To complete a short sale, the homeowner will need to negotiate with their bank or lender to accept a sale price that is less than the total remaining balance of the loan. In Ohio, a short sale is a complicated process. The homeowner will need to first negotiate with the bank to accept a lower amount for the mortgage loan and agree to a short sale. The homeowner will then need to put the home up for sale and accept an offer from a buyer. The buyer and the seller will then need to complete the ordinary real estate closing procedures, such as ordering a title search and the buyer getting a mortgage loan. Finally, the bank will need to approve the short sale and the closing documents. In some cases, the lender may require the homeowner to pay some of the difference between the sale price and the loan amount.

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What is a short sale?

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