Even after all these years, a short sale still remains a mystery to many people.
In real estate, a short sale refers to the sale of a property for less than what the owners still owe on the mortgage. It is an alternative to foreclosure when the homeowner has to sell the home and can no longer make the mortgage payments.
In a Long Island NY short sale, the lender agrees to accept less than the amount owed to pay off a loan. The lender doesn’t have to take the property back and go through the expense and hassle of maintaining it until it can be sold again.
How long does it take for a bank to approve a short sale?
Are you waiting for an approval? Well, it might take longer than you expect.
While every short sale is different, the entire process involved is complicating and time-consuming. Sometimes, it can take several weeks, or even months, to get an approval. This is because most lenders have several layers of management, insurers, and investors that will have to be satisfied before a short sale is approved.
Why does it take so long for a short sale to go through?
Even if you’ve already made an offer and the seller has accepted it, it cannot be considered a done deal yet. The seller’s bank must approve the sale. This is where the delays can happen. You have to understand that in a short sale, banks are losing money that’s why they’re not too keen on it.
As a buyer, you and your agent have no control over how fast or how slow the process will go. The success of the short sale lies on the experience of the listing agent. An excellent agent will properly advise the seller and have a thorough knowledge of the bank and its process.
How long does it take to buy a short sale in Long Island NY?
Every institution has their own guidelines and protocols that must be followed. In addition, specific requirements must be carefully met before a successful short sale takes place.
There is absolutely no way of creating a fixed timeline for a short sale. Short sales may take up to a year to close.
That’s why it’s important to work with an experienced agent to guide you thru the process. The more knowledge and experience the real estate professionals you're working with have on how to handle short sales transactions, the better and the faster the process goes.
How do you buy a short sale?
1. Hire a real estate agent experienced in Long Island NY short sales. As a buyer, it is highly recommended for you to use a buyer’s agent to advise them during a property search. You want someone to set expectations correctly and let you know what’s in store.
2. Get financing and submit your best offer the first time.
If you’re not paying cash, you have to get preapproved for a mortgage loan if you want the seller and bank to take your offer seriously. If you want the property and are willing to offer near or at list price, then by all means do it.
3. Send your short sale packet to the lender and wait for approval.
You should also be filling out the right paperwork and making your offer to the seller’s bank. Then you negotiate with them and wait for approval.
4. Get the property inspected
Depending on your loan type, an inspection may be required for approval. However, even if it’s not required, having an inspection is still a good idea to know exactly what you’re buying.
5. Get the property appraised
Your lender will also require an appraisal.
6. Get approval and close.
Once you have approval, the rest of the process is easier, but you may have to take extra steps like a survey or additional paperwork.
Buying a short sale can be rewarding, but it also has its challenges. Visit my website https://LongIslandShortSaleAgents.com/ for more information regarding short sales.
Call me, Rene Perrin, at 516-802-3785. Successfully purchasing a home that is a short sale can be a stressful and time-consuming process. Let me do the heavy lifting for you!
In case you cannot view this video here, please click the link below Understanding The Short Sale Process in Long Island NY on my YouTube channel: https://www.youtube.com/watch?v=eDQdXinA1hA&feature=youtu.be