Question:

What is a bank short sale?

Answer:

A bank short sale occurs when the bank agrees to take an offer which does not cover the debt in full. However, the bank accepts the short sale offer to settle the debt in full.

Bank short sales can take quite a lot of time, as they usually have a loss-mitigation department short sale has to pass through. Even though sometimes a very competitive offer is made, it may take a year and a half before the bank approves it. The reason is the bank already has REO properties and does not need a swelling portfolio of properties they can't afford to keep.

In a tight market, a bank short sale may take quite some time.

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Common misspellings: mortage and morgage