What do “same difference”, “airline food”, “free gift”, and “accurate estimate” all have in common?

Answer: They are all “oxymorons” (a figure of speech combining two normally contradictory terms).

Now we can add the real estate “short sale” to the oxymoron list!

The “short sale” in real estate is typically not very short. If you are considering a short sale as a home seller or buyer, you should understand upfront that the conventional short sale will take longer than a normal real estate home sale – sometimes twice or three times as long (or longer!). This is because there are extra steps to get a short sale approved by the Seller’s lien holder (typically a bank and there could be more than one). Here is a summary of the minimum steps in a short sale:

1. Seller qualifies for a short sale after seeking expert legal, tax, and financial advice.

2. Listing Agent assists Seller in putting the house up for sale as a short sale.

3. Listing Agent contacts Seller’s bank(s) to notify bank(s) of short sale.

4. Listing Agent markets Seller’s home.

5. Buyer makes offer on Seller’s home.

6. Buyer and Seller negotiate final agreement on sale/purchase of home.

7. Listing Agent submits short sale package to Seller’s bank(s).

8. Seller’s bank(s) review short sale package internally.

9. Seller’s bank(s) orders appraisal or Broker Price Opinion on Seller’s home.

10. Seller’s bank(s) and Listing Agent/Attorney/Seller negotiate final terms of acceptance.

11. Listing Agent/Seller re-negotiate with Buyer as necessary.

12. Seller and Buyer reach final agreement on contract terms.

13. Seller’s bank(s) approve sale/purchase of home.

14. Home sale/purchase closes.

Steps 8 through 13 can take weeks or months to execute. If the Buyer’s initial offer is not adequate from the bank’s point of view (they are the one actually losing money in the short sale), then the bank will attempt to negotiate with the Seller (who may in turn have to re-negotiate with the Buyer) to reach an acceptable agreement. If an acceptable agreement cannot be reached, the Seller’s home will likely go into foreclosure.

As a Seller in a short sale, it is critical to provide all required information outlined by your bank and/or Listing Agent. The completeness of the short sale