In the simplest of terms, a Short Sale is the transaction when the Seller's Net (what the seller will receive once all fees and commissions are paid out) is less than what is owed.

1. "I owe $300,000 and I can sell it for $250,000" - Short Sale
2. "I owe $300,000 and I can sell it for $650,000" - NOT a Short Sale
3. "I owe $300,000 and I can sell it for $300,000" - Short Sale

Option #1 and #2 are clear and easy to understand.

Option #3 the seller would net less than what they are owed due to the commissions and fees involved in any real estate transaction.

Labels: Short Sale Negotiation