What does contingent short sale mean?

It has only been the last few years that we have had the term (status) contingent short sale.  What this means is the Owner (Seller) is trying to sell the home for less the they owe.  A Buyers has submitted a offer to purchase their home and the Seller has agreed to the terms.  Now it all has to be submitted and approved by the mortgage lender of the Seller.  The sellers lender is the one who is going to be short meaning they are going to except less money to clear the title then what is owed to them.  So that is where the term contingent short sale comes from, it is contingent upon the mortgage holders approval of the payment short of what they are owed.

So many people think that short sale means quick but actually I have seen them take up to 6 months, and I am sure some take even longer .  My experience has been  that usually the 1st buyers get tired of waiting and move on to other opportunities.  It is usually the 2nd buyer who does not have to wait as long because much of the negotiations and completed.  If you are in a hurry or on a time limit of when you need to move in to your new home a short sale may not be the right option for you.

Short sales can be great financial investments but you definitely have to have a lot of patience.  Click the link to search all the homes for sale in the St Louis Metro area including Jefferson County Mo Real Estate