Short Sales
Short Sale
What is a short sale?
A short sale occurs when a seller owes more that the fair market value of the home faces a demonstrable financial hardship, and needs the seller's lender(s) approval to close escrow.
Why must the seller's lender approve the transaction?The seller's loan(s) is a lien against the property; in order for title to the property to pass to the buyer, that lien must be satisfied, Therefore getting the seller's lender(s) to accept less than it is owed is a critical step, in a short sale, For the seller's lender(s) to accept a short sale - and therefore less than what's owed on the loan(s) - the seller has to demonstrate a financial hardship and the inability to pay back the full amount of the loan(s)
What happens after my offer is written?
The offer will be presented to the seller, and if the seller wants to accept the offer, you may receive a counteroffer or addendum containing "contingency" language. That is, the seller is willing to accept the offer, but the deal will not be final until the seller;s lender(s) approves of the transaction. Then the seller's agent will submit the signed contract, including any counteroffers and addenda, to the seller's lender(s) along he other documents that the lender(s) may require,
How long will the process take?
It depends on the seller's lender(s) workload and requirements, Buyers who submit an offer on a short sale must be prepared to wait at least two to three months for the the seller's lender(s) to approve the transactions, other contingencies may have to be met (home inspections. actually closes. The seller's lender(s) approval is only one piece of the puzzle.
Why doe it take so long?
Lenders are flooded with short sales requests. Multiply that by the amount of paperwork required to process and approve a short sale and you have a backlog. No one, including the Brokers and Agents Involved in the transaction, can control the lender's approval. I use a company that does nothing but short sales so give me a call to discuss you listing your short sale with me who gets the job done call any time.
Rick"Leave It To"Keever 702-596-5776
