Short Sales

What in the world is a short sale?
Do you keep hearing about short sales and foreclosure and wonder what in the world people are talking about. Does it sound like a foreigh language? Let me shed some light on what a short sale is.
The term "short sale" referrs to a real estate transaction in which the seller/owner is selling the property and owes more on it than it is worth. As an example, a couple purchased a home a few years ago for $200K and now one of them has lost their job and they can no longer afford the property and need to sell. After doing a market analysis on the property is appears the property is only worth $150K. This couple does not have $50K plus expenses to bring to the closing to clear the debt, so we ask the bank to allow the seller to sell the home "short" for the $150K amount. The seller is still the owner but needs the bank to agree before they can sell.
It is usually not a very "short" process, but it can help sellers maintain dignity in the light of the situation.
I am a CDPE (Certified Distressed Property Expert) who is trained to handle short sales.