Saint Clair Homes

The term short sale refers to a situation where the “sale price” of a home is less than what’s owed on the home. Many sellers will negotiate this option instead of facing a foreclosure. The catch with a short sale however, is any offer must be approved by a third party (usually the bank that holds the mortgage). In order for a bank to accept an offer the can be no “profit” going to the sellers. The sellers are seeking forgiveness on the outstanding portion of their mortgage, not a capital gain. Short sales can be a long and tricky process.