There's Nothing Short about a Short Sale

In fact, it may be one of the longest most drawn out versions of any residential purchase. "In a short sale, a homeowner who cannot keep up with their loan asks the lender to take a dollar amount less than what is owed on a home's mortgage, and forgive the remainder of the unpaid debt." (Banks miss an easy housing fix, CNNmoney.com).

So why would anybody in their right mind want to spend 3 Months or more waiting for a bank to approve a purchase price? Typically because it translates to, what everyone so nonchalantly refers to as a, 'great deal.' Not just for the buyers, but for the banks too. Les Christie's article outlines some of the advantages to all sides of the transaction in a short sale, namely the bank saves money, the buyer gets a good deal, and the seller saves some face and hopefully salvages their credit.

In the meantime, as you wait for the approval, shop arround for a good loan. Rates are jumping up and down everyday, and this week, they're up. > Rates on 30-year mortgages jump to 11-week high, AP