The Hunt Team - Coldwell Banker Realty
https://www.huntllc.com/blog/what-is-a-short-sale.html

  A short sale is a term that is often thrown around a in the real estate community. Many home buyers have heard the term, "Short Sale" but aren't familiar with it's meaning. This can be very confusing because there is a lot that is involved with a short sale and it is also often misinterpreted as a fast or quick sale... when in fact.... it is actually a really, really, really slow sale.  Below is some information that may be helpful if you are selling your home or buying a home that is subject to a short sale.

   A short sale is when a property owner is looking to sell their property, but owes more to the bank(or lien holder) than the actual value of the property. In other words, the seller is upside down in their loan. With this process the seller will ask the lien holder (almost always a mortgage company) to negotiate amount due on the loan.  The seller is asking for forgiveness of their debt.  So the process of getting permission from the lienhlder is something that has likely not already been done by the seller. In order for the bank to consider a short sale they have to have an offer on the property. In order to have an offer on the property, they have to advertise the property for sale. What they call a 'catch-22'.  So when you see properties that are for sale and are subject to a short sale, it doesn't necessarily guarantee that you will be able to purchase the property at the price that it is listed for.  Even if you are offering to pay full price, with cash money, with the property as-is and an immediate closing.  The listing price is merely a suggested price that the homeowner and/or the real estate agent have determined is a fair market value. In many cases, it could be below fair market value and the bank will not consider releasing the property for sale at the suggested price to a new buyer. Real estate agents, like us, can help you find the right avenue to selling your house in a short sale,,, or purchasing a house that is subject to a short sale. However, we feel that an attorney should be involved in guiding through this process since they know about real estate law and deal with mortgages on a daily basis.