Short Sale
The term “Short Sale” is used to refer to sales where the home owner owes more on the property than a sale at current market value would net. In order to complete the sale, the lender must be willing to accept less at closing than what is owed. Many owners don’t understand the short sale process or even know it’s an alternative to foreclosure. Even if you owe more on your home than you could sell it for, it’s possible to sell. Lenders would much rather work with you on a short sale than foreclose on your property and then have to sell it at an even lower price.
Example: Mr Smith owes $200,000 to Best Bank. His home is only worth 185,000 and after listing his home he settles with a buyer at a purchase price of .$180,000. From that purchase price selling fees are deducted (Title, Escrow, Recording, Realtor Fees, pro-rated property taxes and interest-etc) and the bottom line on the ledger sheet would be the amount the lender must be willing to accept in order to release the lien and allow the seller to complete the closing.
Colleen Fischesser, Washington State Designated Broker & Owner of RE/MAX Select R.E; Member NWMLS, SKAR, WAR, Voted "Best in Client Satisfaction" Seattle Magazine 2006,2007 & 2008. Representing home Buyers & Sellers for nearly two decades. 
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