Understanding the Short Sale Process
Dec 19th, 2013 by admin
A short sale process is not as rosy as it seems for many homeowners. It is considered when the homeowner is unable to pay the existing mortgage and meet the final obligation to the bank. In this situation, some people would give up and just let the bank take the house through a foreclosure, while others try to find a qualified buyer to negotiate a short sale and be released from the loan obligation. If it is too complicated for you, you can consider getting help from an agent such as The Lion Team to negotiate these types of sales for you.
Getting the bank to grant short sales is a challenging process, but very rewarding when it is gone through. Other than the seller owes more on the mortgage that the home worth, banks also tend to grant short sales if the seller or homeowner has a hardship. The hardship includes reduced income or unemployment, medical emergency, divorce, bankruptcy, job transfer out of town, and death. When applying for submission to the short sale bank, you’ll need a short sale package which consists of letter of authorization to let your agent speak to the bank, 2 years of tax return, recent payroll stubs, last 2 months of bank statements, and completed financial statements among several other things.
When interested on a short sale house, a buyer writes a short sale offer. But before doing so, buyers should ask the agent for a list of comparable sales. The short sale price may be priced below the comparable sales to encourage multiple offers, which makes it has a little bearing on market value. After the seller accepts the potential buyer’s offer, the agent will send the package items to the bank, including listing agreement, buyer’s preapproval letter, executed purchase offer, and seller’s short sale package. Failed to complete the package, the short sale process will be delayed and may cause the buyer to cancel the purchase.