Long Beach Short Sales - What Should Sellers Expect?
Let's be very honest, every short sale is not a good option, many will not close as evidenced by the high failure rate.
What are the factors predicting short sale success? Only one loan is a good indicator of success or two loans with the same bank. The possibility of failure increases however it is possible to negotiate with two different lenders and receive an approval. More than two loans because a much more difficult process. Seller participation and responsiveness is critical for short sale success.
Long Beach Short Sales - What Should Sellers Expect? A two part process - (A) generating the offer and (B) negotiating the short sale. Each step is like a well choreographed dance. The home must be priced correctly as the Lienholder usually conducts an independent BPO (Broker price opinion) to determine value of the property. The list price should attract a buyer willing to wait through the entire short sale process yet also satisfy the lienholder's requirements.
Showing process - The seller and agent agree on terms for showing the property. The home should be show ready during any showings. Show ready is a clean, well maintained home. It is very important that the home be seen by multiple agents and buyers.
Negotiating with the Lender - The lender will require documentation:
- A hardship letter, explaining the circumstances.
- Two months of bank statements and paystubs.
- Two years of W2's and taxes.
- Any retirement or IRA accounts.
The lender may request a financial statement. Time is of the essence and documents must be returned promptly.The length of time for negotiating varies with different lenders. It may last four weeks to several months. However once written approval is received the buyer will have additional time to close their loan usually 30 - 45 days.
Long Beach Short Sales - What Should the Seller Expect? The property being sold belongs to the seller until the transaction is approved and closed. The seller has the right to accept, or decline, the buyers offer and the terms of the short sale. The Realtor works for you and with you.
For a free consultation, and/or to discuss your options, call me. Allow me to help you move forward!