Recently we closed on a short sale. (Wrong WORDING).
Actually it started with the buyers offer in Feb. 2011.
The final approval of the contracts through the sellers two banks got finalized late in August. The deal closed in September.
What is a short sale. It is where the sellers owe more on their home than the market will bear in today's market.
It can take many months to get the sellers lender to approve of a sale that nets the bank or lender less than what's actually owed.
Usually this takes many months and they tells us about half never get approved.
Be prepared when someone suggests a short sale. There is so many legal issues to figure out and work through. Cover your assets.