Lake Mary Real Estate Question of the Week
By Debbie Summers, Lake Mary REALTOR on October 14th, 2009Why Is It Called A Short Sale When It Takes Forever To Buy The House?
I get this question about once a day from Lake Mary homebuyers. Most people assume that because they hear “short sale” it must mean that it takes a “short” amount of time to buy the home. Unfortunately, it is often times not a short period of time at all.
A short sale typically refers to a property that is for sale, where the homeowner owes more to the mortgage holder(s) than what the current market value of the home. 
The mortgage holder(s) has to agree to take less money for the payoff the mortgage than what they are owed, hence the term “short sale” refers to the bank being “shorted” on their payoff. Sometimes there are two mortgages (1st and 2nd mortgage) and the first mortgage can be paid in full from the proceeds of the sale but the second cannot, often times the second mortgage holder will not accept the balance of the proceeds from the sale and effectively terminates the sale because of their resistance to take less money than they are owed.
There are what seems to be an endless amount of scenarios that could be possible in a short sale, but one thing remains the same, it often takes weeks or even months to negotiate acceptable terms with the mortgage holder(s) to facilitate the sale.
Often times, the only thing that is “short” during a “short sale” is your patience.
If you are considering purchasing a short sale in Lake Mary or Seminole County Florida please refer to these valuable resources:
Buying A Lake Mary Short Sale? Buckle Your Seat Belt…
Understanding Lake Mary Short Sales
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