What does potential short sale mean?

I’m looking at a $39,000 condo for sale and it says potential short sale. Can anyone tell me what does this mean? Thanks.

It means that the asking price is $39,000 and implies that anything less than that would be a short sale, so it would mean lender approval.

Short sale means a house is selling for less than the outstanding balance with the mortgages. The lender would have to approve the sale price because they would be taking a loss. Hypothetically, if you love the place, offering *more* than the short sale price means there would not be lender approval, and it would go smoother. Of course, your (future) home would have to appraise enough for the loan.

Good luck!

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One Response to “What does potential short sale mean?”

Meggerz on September 13th, 2011 at 2:05 pm

It means that the asking price is $39,000 and implies that anything less than that would be a short sale, so it would mean lender approval.

Short sale means a house is selling for less than the outstanding balance with the mortgages. The lender would have to approve the sale price because they would be taking a loss. Hypothetically, if you love the place, offering *more* than the short sale price means there would not be lender approval, and it would go smoother. Of course, your (future) home would have to appraise enough for the loan.

Good luck!
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