[quote=urbanrealtor]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.[/quote]
If any obligation due at sale (including, but not limited to all secured debt, 1st TD, junior TD’s, HELOCs, add on fees and interest related to that debt, delinquent taxes, commissions and fees) has to be compromised in order for the transaction to close, it’s a short sale. If someone doesn’t get all their money due, it’s a short sale.
