What's the difference between a Short Pay and Short Sale?
Short-sale and short-pay are two different ways to say the same thing. In a short-sale, the seller cannot receive any proceeds from the sale so in a way, the Seller does not really care how much a home sells for- that said, the goal of the Seller is to get the process approved so the higher the purchase price offered, the more likely it will be that the bank approves the short-sale contract.
At the end of the day, it is the current market forces and what the Buyers are willing to pay that determines the final sale price (i.e.- current market value) so the fact that a home that is on the MLS is a short-sale really doesn't impact what the home eventually sells for. The Buyers determine market value based on the offer that gets accepted.
Short-sale and short-pay are two different ways to say the same thing. In a short-sale, the seller cannot receive any proceeds from the sale so in a way, the Seller does not really care how much a home sells for- that said, the goal of the Seller is to get the process approved so the higher the purchase price offered, the more likely it will be that the bank approves the short-sale contract.
At the end of the day, it is the current market forces and what the Buyers are willing to pay that determines the final sale price (i.e.- current market value) so the fact that a home that is on the MLS is a short-sale really doesn't impact what the home eventually sells for. The Buyers determine market value based on the offer that gets accepted.
