With so many people struggling financially, we are seeing a lot of short sales.  But many don’t really understand what a short sale is.  The Short Sale Disclosure of the Utah Association of Realtors gives us the following  description.  The term “Short Sale” is used in the real estate business to describe a situation where the current fair market value of the property is less than the debt owing against the property.  In other words, the Seller can’t sell the property unless the creditors (“Third Parties”) agree to accept a payment that is less than (or “Short” of) the amounts actually owed to those Third Parties.  The Third Parties may include mortgage lenders, mortgage insurers, bankruptcy trustees, and federal, state and local taxing  authorities (such as the IRS or State Tax Commission) or other lien holders. 

One of the main problems with Short Sales is that you can spend a lot of time and then end up not getting the home at all.