When searching , you may come across the term "Short Sale" and wonder what exactly does that mean.  A short sale does not have to do with the time it takes to close (purchase a home).  A short sale is the when the asking or "list price" is lower than what is owed to the lender.  For example, there may be a home on Hilton Head Island that is listed for $400,000.  The seller may have purchased the home for $550,000 and now owes $440,000.  There is now a difference, or shortage, of $40,000 from what the home is listed at and what is owed to the bank ($440,000 owed less the list price of $400,000 = $40,000). 

With the $40,000 shortage, the seller can either pay the difference OR, like in most cases, asks for the difference to be forgiven or waived (this could become a deficiancy judgment against the seller).  This requires approval from the bank/lender.  When an offer comes in on a Hilton Head Island SC home or villa noted as a short sale, the seller first negoitates the offer.  After there is a contract signed by the seller and purchaser, the contract is then given to the bank/lender to approve the shortage.

Depending on who the lender is, waiting on their decision could take several weeks and even months.  The waiting time is usually the biggest drawback with purchasing short sales on Hilton Head Island.  Randy Smith is a Certified Short Sales specialist and can offer both experience and guidance throughout the Hilton Head Island short sale process.