What exactly does a shortsale mortgage mean to a buyer?

The home I'm interested in purchasing is listed as a ';short sale';. What exactly does that mean to me as a potential buyer? Are there things I need to be aware of or look out for? I'm very interested in this home. Will the closing cost be more expensive?What exactly does a shortsale mortgage mean to a buyer?
When the home is listed as a short sale, it basically means that the previous owner of the home sold the house at an amount less than what is owed to the bank or lender. The previous owner and the bank/lender comes to an agreement wherein the property will be sold but the amount that the bank/lender will get back is less than what is originally lent to the homeowner.If you are planning to buy this house, you may think about this: a house in short sale meant that it was previously in default and the previous owner can't afford to pay the mortgage. You can also shoulder a higher closing cost. Then you buy the house as it is. Lenders may not be willing to pay for repairs on the home.What exactly does a shortsale mortgage mean to a buyer?
Delays, frustration, problems.


Means the seller is upside down on their mortgage and owe more than their house is worth. Means seller needs bank approval to complete the sale. Banks operate by committee, slowly and not always in their own best interests. A short sale means the seller asks the bank to let them sell the property, for the bank to take less than their lien is worth and to let the sale go through. Bank may or may not be getting a deficiency judgment against seller, but is losing secured interest in home, at less than the value of the mortgage.


Glenn is right above. . . .


Don't count on this closing until it closes. . .many glitches. . . .problems. . .delays. . . .you're buying AS IS, and certainly want a professional building inspection even though seller won't pay for any repairs, but you need to know exactly what you're buying, or whether you should buy or nor.
The main thing is it will be a very long an unpredictable time before you can close on this. You mortgage commitment may expire and the seller's bank does not care.





The closing costs for you should be about the same and you may get a good price. The seller will not likely have any money to pay for any repairs and the seller's bank will not agree to make them, so you will be buying it as is.
A short sale is when you purchase a home for less than is owed on it. Closing costs can be higher since the seller really can't pay your closing costs for you, so you will be responsible for them. The only thing that you should be aware of is time. It can take months for the lender to accept or decline your offer on the home. If you are in a hurry to move, don't purchase a short salehome!





Good luck!
It means you are buying a house for less than the current owners owe on it. The seller's needs the bank's permission or they have to come in with the difference. Other than taking longer, usually, it's the same. Closing costs are the same, but you will probably have to pay for them.
i agree with the above statements. you should also know that there is much more chance of things falling through with a situation like this. the seller is also much less likely to pay your closing costs, or to pay to have things fixed as their cash flow will be very limited.