3 Answers

A short sale occurs when a seller owes more on his property than it is currently worth, does not have the necessary money to pay the difference and the bank agrees to accept less than the full amount of the mortgage.  In order to qualify for a short sale the home owner must also demonstrate financial hardship. 

A short sale is obviously not the ideal situation for a home owner or the bank for that matter.  No one wants to be in a situation where they are force to short sell their home but it is a much better option for both parties than a foreclosure.

Thanks!!  And I assume, then, that if i make an offer less than the price, that i'll be negotiating with the Bank and not the homeowner??

thats where they have end of summer sales!