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> When I used to live in downtown Miami there were high rises going up everywhere with prices starting at 500k-1mm. These same places would later be short sales
by chollida1 11y ago
> When I used to live in downtown Miami there were high rises going up everywhere with prices starting at 500k-1mm. These same places would later be short sales for 150-250k after the GFC.
This sentence doesn't make any sense to me. The definition of a short is to sell something you dont' own with the explicit intention of buying it back later at a lower price.
How can you sell a condo you don't own? and then why plan on buying the condo back at a later date?
- simantel 11y agoYou're thinking of the practice of shorting stocks, which is different than a short sale. From Wikipedia: A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case, if all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.
- chollida1 11y agoWell how about that. I learned something today! I appreciate you taking the time to write this out!
- deleted 11y ago[deleted]
- ruggeri 11y agohttps://en.wikipedia.org/wiki/Short_sale_(real_estate) https://en.wikipedia.org/wiki/Short_sale_(real_estate)
- bluedino 11y agoIn real estate a short sale is when the bank allows the borrower to sell the property for less than what they owe on it. I buy a condo for $500k, sell it for $250k in a short sale but I need the agreement of the lienholder in order for this to happen.