In today's market, there are several different types of sellers and several different types of scenarios. A short sale allows the borrower [homeowner] to sell the home for less than the total amount due on the mortgage loan secured by the home. It helps the borrower [homeowner] avoid foreclosure and mitigates soem of the lender's loss through avoiding or minimizing foreclosure activities.
When buying a home that states in the marketing or MLS listing the terms: "Subject to 3rd Party Approval" or "Short Sale", this is advertising that the home is in a short sale situation where the lender how provided a mortgage on the home must agree to the terms of the sale.
Each potential short sale is reviewed on a case-by-case situtation. The short sale proess can take considerable time. Each lender/bank/mortgager must obtain its own appraisal of the property, review all the documentation submitted by the borrower, and seek authorization from the investor and/or insurer on the loan. For this reason, timing is of the essence and at any time, if the borrower is in default on the loan, the home could already be in the foreclosure process.
To learn more about the Short Sale Process, talk to Kim !