What exactly is a short sale. It is a termed used when the value of your home and paying fees associated with selling result in the proceeds from the sale not being enough to pay off the existing mortgage loan or other liens on the property. Often times, you will hear a Seller referring to be “under water” with the mortgage which is the thing as being upside in the mortgage. Both will result in a short sale when sold.
You can still sell your home but it would have to be conditional on your lender or other lien holders approving what is known as a short sale. Short sales take on the average of three to five months to be approved and there is no guarantee the lender will approve the sale amount.
You as the Seller can accept any offer you want but the Buyer must include a provision in the contract that the sale is contingent upon short sale approval by the Sellers lender.
If the lender is unwilling to grant an approval for the sale price, the Buyer is under not obligation to continue with the purchase. They may choose to accept the lenders proposed price or terminate the contract.