«
»

Speed up your Short Sale


Help Button

Nov. 29, 2009 – 1:45 AM
By Market Mix Up – Short Sale Tips

As a buyer in today’s real estate market. Trying to understand why short sales take so much time to get an approval is nearly impossible. That’s why we decided to give our readers some tips and advise on how short sales work, and what to expect when submitting docs/offer for an approval.

A Short Sale is a sale of real estate in which the sale proceeds fall short of the balance owed potentially allowing the borrower the option to avoid foreclosure. But in today’s short sale market, most buyers end up walking due to long waits. Or the seller gets so impatient, they end up walking from the home causing them a foreclosure.

Here are some tips for the seller on how to get a speedy short sale:

1. Stay on top of getting all docs requested for an approval. Like a refinance/purchase; the same docs are typically required to submit for an approval with Underwriting. With that said, you will have to provide a hardship letter, pay stubs, bank statements, purchase contract, credit report, etc. Since banks are very bitter about the significant losses. Most lenders will quickly close files with either missing docs or no offer/purchase contract.

2. Borrowers have the option of hiring an attorney, 3rd party, or have their lender handle all negotiation of the short sale. While we feel the best option is to use their current lender. Some try using a 3rd party, and end up having to pay fees with no guarantee that the bank will approve their short sale.

3. Make sure you have an experienced Real Estate Agent that knows the market, and is knowledgeable in short sales. It is common for agents to either give up without any notice, or just quit because they’re tired of working commission only with no paycheck.

4. Last, but not least… understand that banks have a lot on their plate and are constantly trying to come up with new guidelines, which will only speed up the process. Even though some may experience Mortgage Insurance and second lien approval issues. One must be understanding that this is the beginning of a long downturn, which is expected to only get worse once the Commercial Market starts to default.

Good luck with your short sale! We wish you the best, and hope this information will be of some help with your short sale experience.

[Digg] [Facebook] [Google] [MySpace] [Reddit] [Technorati] [Twitter] [Yahoo!] [Email] More »

This entry was posted on Sunday, November 29th, 2009, 3:45 am and is filed under Housing Market. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.

  1. No comments yet.
(will not be published)
  1. No trackbacks yet.