Short Sales

A short sale of real estate is a sale in which the net proceeds from selling the property will fall short of the debts (liens) secured against the property.  If all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.  The permission is granted by the lender(s) holding the liens that thus may require an extended time to close a short sale if approved by the lender.   Fannie Fae - Short Sales 101