I was recently asked to answer a question on What are the most important tips i could give a buyer who wanted to purchase a short sale in Manchester NH. My answer though applies to any buyer in any state looking to purchase a short sale. The first thing is that some people and surprisingly some agents still do not know what a short sale is.
THE BASIC PROCESS OF THE SHORT SALE
1. The listing agent or negotiator completes a title search to see how many liens and if home is in foreclosure.
2. Listing agent or negotiator makes preliminary contact with sellers bank to obtain any specific forms or instructions they want or need to complete the short sale
3. The listing agent completes a broker price opinion, home should be priced at or just below market value. pricing a home too low, will result in the short sale being counter offered or refused.
4. Listing agent markets property, obtains an offer, submits short sale package to the bank. The short sale offer and package MUST be complete or will be rejected.
5. The bank will assign a negiotiator for themselves, they will review the package, if complete will order an appraisal or bpo, once it comes back will review what the home is worth versus what they will receive from the short sale against what they would receive if they foreclosed.
6. This process when at it's best is 6-8 weeks, the bank will then accept the offer as is or may counter the offer trying to reduce costs of the short sale or get more money from the seller or even the buyer.
The most important thing to note is a short sale should NEVER be considered approved unless received in writing. All offers, counter offers and such should always be in writing for your protection. No matter what a short sale will only go as well as the listing agent is experienced in short sales and who is doing the negotiating for the seller? If they are not experienced, the short sale process will be much more difficult.
FOR A COMPLETE LIST OF TIPS AND DETAILS ON SHORT SALES PLEASE SEE MY BLOG
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THE BASIC PROCESS OF THE SHORT SALE
1. The listing agent or negotiator completes a title search to see how many liens and if home is in foreclosure.
2. Listing agent or negotiator makes preliminary contact with sellers bank to obtain any specific forms or instructions they want or need to complete the short sale
3. The listing agent completes a broker price opinion, home should be priced at or just below market value. pricing a home too low, will result in the short sale being counter offered or refused.
4. Listing agent markets property, obtains an offer, submits short sale package to the bank. The short sale offer and package MUST be complete or will be rejected.
5. The bank will assign a negiotiator for themselves, they will review the package, if complete will order an appraisal or bpo, once it comes back will review what the home is worth versus what they will receive from the short sale against what they would receive if they foreclosed.
6. This process when at it's best is 6-8 weeks, the bank will then accept the offer as is or may counter the offer trying to reduce costs of the short sale or get more money from the seller or even the buyer.
The most important thing to note is a short sale should NEVER be considered approved unless received in writing. All offers, counter offers and such should always be in writing for your protection. No matter what a short sale will only go as well as the listing agent is experienced in short sales and who is doing the negotiating for the seller? If they are not experienced, the short sale process will be much more difficult.
FOR A COMPLETE LIST OF TIPS AND DETAILS ON SHORT SALES PLEASE SEE MY BLOG
If you are looking to purchase a short sale or If you owe more than your house is worth, i may be able to help. Please try and avoid out of state or out of town agents and companies that make out of this world promises. We are local agents with experience who never charge any up front fees.
ONE OF NEW HAMPSHIRE'S LEADING BANK OWNED REAL ESTATE AGENTS
Updated August 25, 2011
Copyright 2008-2011, All rights reserved
ONE OF NEW HAMPSHIRE'S LEADING BANK OWNED REAL ESTATE AGENTS
Updated August 25, 2011
Copyright 2008-2011, All rights reserved
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