Let’s see. The loan(s) the seller owes are greater than the current market value. The seller gets the lender(s) to take less. The lender(s) agree provided the seller do not get any monies from the sale.
Let’s see. The short sale is sold for market value. Market value is what buyers are willing to pay. So is the buyer getting a benefit of a bargain?
Let’s see. Most buyers perceive that they are. Many agents perceive that their buyer is getting a benefit of a bargain. After all, the property is sold for less than what is against it.
Let’s see. Could it be that the seller overpaid? Could it be the lender(s) overloaned? Could it be the buyer is actually paying fair market value?
Let’s see. The lender(s) go along with the shortage based upon their evaluation that the property is being sold for fair market value. .
Let’s see. It seems the logic against the benefit of the bargain can be argued, and argued successfully.
Let’s see. At the very least, the benefit of the bargain is with the buyer who gets to buy a property that would not have been on the market otherwise.