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What is a shortsale?

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A shortsale occurs when the current market value of a property is less than the amount of debt owed.  The lienholder (in shortsales, this is nearly always the primary mortgage holder) must approve of the sale, the price, and nearly every detail throughout the transaction.  This creates a very lengthy, drawn-out process.  The buyer's level of risk is high since the existing lienholder retains the option of changing their mind and revoking the sale right up until the time of closing

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