Buyers Don’t get tied up in a Short Sale contract that can drag on for months
Costing you precious time and hard earned money!
The key to avoiding the pitfalls and traps that plague many home buyers today comes down to one thing: Knowledge . . .
KNOWLEDGE IS POWER!
Find Out Exactly What A Short Sale Is
A Short Sale is typically executed to prevent a Seller's home from going to foreclosure. A Short Sale is the sale of a home in which the proceeds from the sale fall short of the balance owed by the Seller on the existing loan secured by the property being sold. The lender agrees to discount the loan balance to current market value often due to an economic or financial hardship on the part of the Seller.
Extenuating circumstances usually related to the current real estate market and the Seller's financial situation influence whether or not the Lender will approve the Short Sale. Negotiations for the Short Sale is done through communication with a bank's loss mitigation or workout department and the Seller's Realtor. Based on the information and documentation the Seller provides, the lender has the right to approve or disapprove a proposed sale. If the Short Sale is approved, the Seller sells the property for less than the outstanding balance of the loan and turns over the proceeds of the sale to the lender in full satisfaction of the debt.
The entire Short Sale process can take anywhere from 2 weeks to 2 months (or more) depending on primarily these three things:
- How cooperative and timely the Seller provides the needed documentation for the Lender's review
- How experienced the Seller's Realtor is at negotiating and following up on the process
- and How responsive the Seller's Lender is
Buyers Don’t get tied up in a short sale contract that can drag on for months
Costing you precious time and hard earned money!
Read our next post on the Pros and Cons of a Short Sale
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