Sometimes. Many people hear the phrase "short sale" and instinctively think of a seller that is in financial trouble and needing to sell their home fast to avoid further financial problems. This is at times the case and can be an opportunity for a buyer to do well from another's misfortune. In contrast, a lender may consider a short sale even if the seller is current with their mortgage, but property values have depreciated. In these instances the "bargain" price may in fact be consistent with actual market values rather than below.
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