Short sales are in high demand in this down economy. They have become commonplace amongst listing agents, and can present quite a bargain for the savvy househunter who knows where to look.
But they are also a complex and complicated transaction that requires some knowledge and research. As with any real estate transaction, make sure you are working with a skilled and professional REALTOR®.
Short Sale - Not A "Small" Process
Submitted by Rusty Collins on Thu, 2010-08-26 08:14
It is not quick. The word "short" in "short sale" does not mean small amount of time for the transaction-that would be a misgnomer in a land of giants.
No matter how big or how small your house, if it is underwater, it may be time to move. If you owe more than your home is worth, and you are standing on your head to make payments, you may want to consider a short sale to get out from underneath the house that has landed upside down on top of you. A short sale may be the best benefit to you and the bank, even though the bank will take a loss on the loan and you will take a ding on your credit.
As a law firm that handles short sales, we meet with homeowners and their real estate agents to go over what a short sale is and what it is not. We request a copy of the listing agreement and an authorization from the homeowner to talk with their lender on their behalf. We tell the real estate agent to sell the property for whatever they can sell it for.
Then the fun begins. We start the negotiation process with the lender-feature-length on-hold waits and sending documents, often the same ones more than once. Some lenders will ask for a seventy page document to be faxed, then they tell us it will take two weeks before that fax will get to someone's desk. Plus every bank that goes out of business, the transactions go to Bank of America, so their system gets bogged down. We can be six months into a negotiation when suddenly a lender will request a document within a certain period and if you fail to meet their timeframe, they close the file and you have to start the negotiation all over again.
It can be a very frustrating process, as well as a very worthwhile process for the homeowners we are able to help. A short sale is not the right answer for everyone, but it may be a better solution than a bankruptcy depending on the circumstance. Seek competent legal counsel to review your options.
For more information about Short Sales, please call 240-737-5024 or send an email to firstname.lastname@example.org!
Keller Williams Preferred Properties
9701 Apollo Drive, Suite 102
Largo, MD 20774