--- title: Palm Beach Real Estate Tips | Boca Raton Real Estate Tips | Blog | Palm Beach Short Sales description: Palm Beach Short Sales | New forms of marketing in the real estate industry as well as tips for home buyers in Palm Beach, FL. --- - [Home](https://debramillerrealestate.hs-sites.com/) - [Contact Us](https://debramillerrealestate.hs-sites.com/contact-us/) - [Blog](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog) [![](https://debramillerrealestate.hs-sites.com/hs-fs/file-16025086-png/images/house-logo-4.png)](https://debramillerrealestate.hs-sites.com/) [![Debra Miller](https://debramillerrealestate.hs-sites.com/hubfs/images/Debramiller.png)](https://debramillerrealestate.hs-sites.com/) 561.886.8764 # Debra Miller Real Estate Blog ## [What’s All This I Hear About A Short Sale?](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/bid/44203/What-s-All-This-I-Hear-About-A-Short-Sale) - [Tweet](https://twitter.com/share) *Understanding a Short Sale and Is It Right For You* Short sales are continuing to grow in popularity as many home owners have fallen on difficult times during this economic crisis. In an effort to lower the foreclosure rate, the Obama administration earlier last year placed an emphasis on short sales. ![boca-raton-short-sale-sign](https://debramillerrealestate.hs-sites.com/hs-fs/file-16024436-jpg/images/boca-raton-short-sales-sign-resized-600.jpg?width=156&height=147&name=boca-raton-short-sales-sign-resized-600.jpg)A [short sale](http://homebuying.about.com/od/glossarys/g/ShortSale.htm) is when a property is sold for less than the balance left on the mortgage loan. The borrower asks the lender to accept a sale price that is less than is loan and the lender decides that selling the property at a loss it is better than pressing the borrower.  The borrower and the lender both consent to the sale and it allows the property owner to avoid foreclosure. However, the short sale does not always release the borrower from the obligation to pay the remainder of the balance of the loan, known as the deficiency. **Process** The property owner is required to prepare a “short sale package”. A complete and updated package is critical is getting a short sale approved quickly. The package includes the following documents:   Short Sale Package 1.    Realtor Submission Check list 2.    Listing Agreement 3.    Contract on Property 4.    Borrower/Seller Short Sale Information | Document Checklist 5.    Authorization to Obtain Information from lender 6.    Hardship Letter 7.    Personal Financial Statement 8.    Last two months of pay stubs 9.    Last two years of W-2’s/1099 10.  Last two years of tax returns 11.  Last two months of bank statements 12.  Supporting documents as evidence of hardship (medical bills, judgments, etc.) 13. Divorce documents, if applicable   Every lender has their own specific requirements and many have their own forms that must be used ** ** **Additional parties** Multiple levels of approvals and conditions are very common with short sales. Junior lien-holders – such as second mortgages, HELOC lenders, and HOA (special assessment liens) – may need to approve the short sale. Frequent objectors to short sales include tax lien holders (income, estate or corporate franchise tax – as opposed to real property taxes, which have priority even when unrecorded) and mechanic’s lien holders.   **Timeframe for short sale approvals** Short sale success rates vary from state to state and from bank to bank. Bank of America short sales, as of 2009 are still the longest to be approved and have the highest failure rate. Whereas, Citi and banks like Wells Fargo tend to move faster. Smaller “local” banks tend to have their own rules, but will typically approve the short sale in days, not months.** ** ** ** **Consent** Short sales are different from foreclosures in that a foreclosure is forced by a lender, whereas both lender and borrower consent to a short sale.   **Bank Approved Short Sale** "Bank Approved Short Sales” are advertised by real estate advertisements, indicating that a real estate broker has had a previous price approval for the property. An advantage to a short sale is that it’s less damaging to your credit score than a foreclosure. It’s important to remember that short sales can take a while to go through so it’s important you speak with an experienced professional. For additional information on short sales please visit my resource section on [short sales](https://debramillerrealestate.hs-sites.com/resources-real-estate/short-sale/).   Video Credit- Zeller's Blog Photo Credit VoicePad CEO, Randy Standard 8158 Comments [Click here to read/write comments](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/bid/44203/What-s-All-This-I-Hear-About-A-Short-Sale#comments-listing) Topics: [Palm Beach Short Sales](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/palm-beach-short-sales), [Short Sale Advice](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/short-sale-advice), [What is a short sale?](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/what-is-a-short-sale), [Short Sales](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/short-sales), [Boca Raton Short Sales](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/boca-raton-short-sales) [All posts](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/all) ### Debra Miller ![Debra-Miller-Real-Estate](https://debramillerrealestate.hs-sites.com/hs-fs/file-16024870-jpg/images/debraheadshot.jpg?width=151&height=159&name=debraheadshot.jpg) ### Subscribe via E-mail ### Latest Posts ### Posts by category - [Boca Raton QR codes (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/boca-raton-qr-codes) - [Boca Raton Short Sales (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/boca-raton-short-sales) - [Debra Miller Real Estate (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/debra-miller-real-estate) - [How to use QR codes (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/how-to-use-qr-codes) - [Palm Beach QR codes (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/palm-beach-qr-codes) - [Palm Beach Short Sales (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/palm-beach-short-sales) - [QR code generator (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/qr-code-generator) - [QR codes (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/qr-codes) - [QR codes in Real Estate (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/qr-codes-in-real-estate) - [Real Estate marketing (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/real-estate-marketing) - [Short Sale Advice (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/short-sale-advice) - [Short Sales (1)](https://debramillerrealestate.hs-sites.com/palm-beach-real-estate-tips-blog/topic/short-sales) - [What is a short sale? 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