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  • August 4, 2009 at 11:44 AM #16134
    teaboy
    Participant
      The wikipedia definition: A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold.
      http://en.wikipedia.org/wiki/Short_sale_(real_estate)

      Per this definition, is it fair to surmise that a Real Estate sale cannot be confirm as a Short Sale until after it has sold?

      Case in point: The listing at 8832 POLANCO SAN DIEGO, CA 92129, MLS#: 090043921.

      It appears that the owner has missed one or more payments on their primary mortgage, which is #100k+ less than the FMV of the property. If so, would this be a Short Sales or not? Would other debts secured on the property (e.g. tax debts) be a factor?
      Would other debts not secured on the property (e.g. credit card debt) be a factor?

      TB

    August 4, 2009 at 11:47 AM #440597
    urbanrealtor
    Participant

    If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.

    August 4, 2009 at 11:47 AM #441373
    urbanrealtor
    Participant

    If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.

    August 4, 2009 at 11:47 AM #441201
    urbanrealtor
    Participant

    If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.

    August 4, 2009 at 11:47 AM #440797
    urbanrealtor
    Participant

    If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.

    August 4, 2009 at 11:47 AM #441130
    urbanrealtor
    Participant

    If all liens and fees total more than the sale price, then it could be a short.

    Sometimes sale price is below FMV (especially for shorts).

    If the seller is behind on payments but has equity, then it is a distress sale, not a short sale.

    By definition, no lender approval would be required.

    August 4, 2009 at 11:54 AM #440607
    urbanrealtor
    Participant

    Liens could include secure debt.

    Unsecured debt should not be a factor unless a judgement attaches them to the property.

    August 4, 2009 at 11:54 AM #441383
    urbanrealtor
    Participant

    Liens could include secure debt.

    Unsecured debt should not be a factor unless a judgement attaches them to the property.

    August 4, 2009 at 11:54 AM #441211
    urbanrealtor
    Participant

    Liens could include secure debt.

    Unsecured debt should not be a factor unless a judgement attaches them to the property.

    August 4, 2009 at 11:54 AM #440807
    urbanrealtor
    Participant

    Liens could include secure debt.

    Unsecured debt should not be a factor unless a judgement attaches them to the property.

    August 4, 2009 at 11:54 AM #441140
    urbanrealtor
    Participant

    Liens could include secure debt.

    Unsecured debt should not be a factor unless a judgement attaches them to the property.

    August 4, 2009 at 11:57 AM #441216
    teaboy
    Participant

    Thanks, UR.
    The wikipedia definition: A Forced Sale of Real Estate is an action taken in a civil court forcing the owners to sell the property at issue and divide the profits. The profits are divided, generally under a reliance damages theory, that would best restore the owners to the position they would have been in had the contract never been entered into.
    http://en.wikipedia.org/wiki/Distress_sale

    So is the above property a Short Sale or Distress Sale?

    TB

    August 4, 2009 at 11:57 AM #441388
    teaboy
    Participant

    Thanks, UR.
    The wikipedia definition: A Forced Sale of Real Estate is an action taken in a civil court forcing the owners to sell the property at issue and divide the profits. The profits are divided, generally under a reliance damages theory, that would best restore the owners to the position they would have been in had the contract never been entered into.
    http://en.wikipedia.org/wiki/Distress_sale

    So is the above property a Short Sale or Distress Sale?

    TB

    August 4, 2009 at 11:57 AM #441145
    teaboy
    Participant

    Thanks, UR.
    The wikipedia definition: A Forced Sale of Real Estate is an action taken in a civil court forcing the owners to sell the property at issue and divide the profits. The profits are divided, generally under a reliance damages theory, that would best restore the owners to the position they would have been in had the contract never been entered into.
    http://en.wikipedia.org/wiki/Distress_sale

    So is the above property a Short Sale or Distress Sale?

    TB

    August 4, 2009 at 11:57 AM #440612
    teaboy
    Participant

    Thanks, UR.
    The wikipedia definition: A Forced Sale of Real Estate is an action taken in a civil court forcing the owners to sell the property at issue and divide the profits. The profits are divided, generally under a reliance damages theory, that would best restore the owners to the position they would have been in had the contract never been entered into.
    http://en.wikipedia.org/wiki/Distress_sale

    So is the above property a Short Sale or Distress Sale?

    TB

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