DH and I are looking at a few houses on Friday and one of them is SO beautiful, but it's a short sale. I know NOTHING about that, could anyone clue me in? I've heard they take forever. Any and all information is appreciated and helpful! 
ETA: There are also a few foreclosures in the area and I'm curious about that process if anyone has anything to offer
bananas / 9229 posts
A short sale is when the owner owes more on their mortgage than the house is currently worth. So selling it means they will still owe on their mortgage.
Here's some more info:
http://en.wikipedia.org/wiki/Short_sale_(real_estate)
ETA: A foreclosure is when an owner stops making payments on the mortgage. This can happen whether the value exceeds the mortgage or not. There have been situations where people owe more than the property is worth and simple stop paying and basically allow the bank to foreclose. Here's some info: http://en.wikipedia.org/wiki/Foreclosure
Foreclosures involve purchasing the property from a bank, can be a good deal or market price, condition can totally vary. Short sales may or may not involve the bank.
grapefruit / 4136 posts
@LindsayInNYC: thank you! I'm going to find out more but the price listed is $50k lower than our budget and we could easily finish the unfinished basement, that's what we are thinking and I'm kind of excited 
@Thehistoryofus: my main concern is it taking a lo.g time, my job starts March 4 and until we buy a house I'll have to live separate from DH and LO and only see them on weekends 
honeydew / 7504 posts
I think the time frame has a lot to do with the bank. My sister and BIL just bought a house on short sale, and it took just under 2 months, so not much longer than a regular sale. But a friend of mine also bought a short sale, and it took over 6 months. The bank has to look at ALL of the seller's finances to make sure they qualify for a short sale, and if there's anything funky, it can hold up the approval of the buyer's offer.
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