At first glance, the term “short sale” invokes thoughts of a quick turnaround time in a real estate transaction. For example, a house in Washington D.C. goes on the market one day, and buyers hastily write offers the next. While this seems like a logical interpretation, a short sale actually has nothing to do with the time it takes to sell a real estate property.
Instead, a short sale refers to being “short” on money, specifically on the amount needed to pay the seller’s mortgage in full.