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Answers (10)
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Most of them don't work out. ... Happy funding, Rudi
- Jack Chang, "jackchangrealty"
- Contributions:32
There is a lot of different scenrios, give me a call and I can explain it to you. If you have specific questions, email me at jackchang@cbbain.com
Thanks,
Jack Chang
Coldwell Banker Bain
Tel: 253-850-5028
- Ryan Halset, "RyanHalset"
- Contributions:730
This question typically leads to a lot more questions. I think it's better answered in person or over the phone to make sure all aspects of a short sale are answered for you. I'd be happy to help answer this (and any other questions) if you'd like to chat (my contact info is in my profile). I'm local to you and familiar with short sales...
Thanks!
Thanks!
- Linda Strasberg, "L Strasberg"
- Contributions:2314
I forgot to mention the very step is to allow me to communicate and negotiate on your behalf with your lender and list your property with me. To make your life easier I have all the back office forms required from all the lenders who accepted tarp monies...which are all of them. There are no closing costs, no commissions due from the seller when the lender agrees to accept a short sale payoff. And you will avoid a foreclosure that would only reduce property values of your neighbors even further. Some may even qualify to receive $3000 at closing even though your house is upside down!
- Linda Strasberg, "L Strasberg"
- Contributions:2314
The first step is to get the approval of your lender(s) and have them agree to a short sale payoff for less than what you owe. You need to provide financial information that proves there is a hardship that would in essence create a foreclosure if a short sale were not accepted by the lender(s).
It is in essence the same as any other real estate transaction with the exception that a short sale addendum needs to be signed off by both the seller and buyer which clarifies to all parties of the transaction that even though the seller may agree to the buyers offer, the final decision to sell the property for less than what the seller owes is that of the sellers lender(s).
When a viable offer at fair market value or better (the short sale amount required) is presented along with proof of funds by the buyer and the offer is accepted by the seller it will then be forwarded to the sellers lender(s) along with signed short sale addendum for their review and consideration along with a cover letter indicating length of time the property was on the market along with marketing history and reports furnished by the Agent with SFR designation (me) representing the short sale seller.
When the lender(s) accepts the offer that is when the time line begins as in any real estate transaction; i.e.,COE 30 days. Wala...a smooth transition has been made from a defaulted mortgage to conveying the property into the hands of a viable home buyer who has shown they are credit worthy and/or pays with cash thereby avoiding a foreclosure in the neighborhood and on the sellers credit history.
When the sellers primary residence is sold for less than what is owed a deficiency judgment cannot be given to the lender for the difference owed at the close when the property is located in Nevada. Also see Mortgage Debt Relief Act of 2007 and ask your accountant to complete the required forms for the year in which the short sale took place.
It is in essence the same as any other real estate transaction with the exception that a short sale addendum needs to be signed off by both the seller and buyer which clarifies to all parties of the transaction that even though the seller may agree to the buyers offer, the final decision to sell the property for less than what the seller owes is that of the sellers lender(s).
When a viable offer at fair market value or better (the short sale amount required) is presented along with proof of funds by the buyer and the offer is accepted by the seller it will then be forwarded to the sellers lender(s) along with signed short sale addendum for their review and consideration along with a cover letter indicating length of time the property was on the market along with marketing history and reports furnished by the Agent with SFR designation (me) representing the short sale seller.
When the lender(s) accepts the offer that is when the time line begins as in any real estate transaction; i.e.,COE 30 days. Wala...a smooth transition has been made from a defaulted mortgage to conveying the property into the hands of a viable home buyer who has shown they are credit worthy and/or pays with cash thereby avoiding a foreclosure in the neighborhood and on the sellers credit history.
When the sellers primary residence is sold for less than what is owed a deficiency judgment cannot be given to the lender for the difference owed at the close when the property is located in Nevada. Also see Mortgage Debt Relief Act of 2007 and ask your accountant to complete the required forms for the year in which the short sale took place.
- Linda Strasberg, "L Strasberg"
- Contributions:2314
It is in essence the same as any other real estate transaction with the exception that a short sale addendum needs to be signed off by both the seller and buyer which clarifies that even though the seller may agree to the offer the final decision to sell the property for less than what is owed is that of the lender(s)
- Tere Rice, "Tere Rice"
- Contributions:307
A Short Sale agent will put together a package to send to the Home Owners lender asking the lender to allow the borrower to sell their home short of what is owed. This package must have the home owners past two years W2's, two months profit and loss, two pay stubs, a hardship letter why the home owner can no longer make their payments, a letter of authorization for the RE Agent to speak to the bank on the home owners behalf, current listing agreement, HUD 1, and a fully executed sales contract. Current BPO or Comparative market valuation, with sold and active comparable homes. It is still taking 60-90 days for the bank to respond. Once written approval is received escrow can be 30-45 days.
In popular market places it can be a great deal for FHA and VA home buyers to get their foot in the door. Experienced Short Sale agents are best to get the job done as Short Sales take persistence and perseverance and PATIENCE!
In popular market places it can be a great deal for FHA and VA home buyers to get their foot in the door. Experienced Short Sale agents are best to get the job done as Short Sales take persistence and perseverance and PATIENCE!
- Tiffany Fykes, "tiffanyfykes"
- Contributions:31
The short answer is the bank agrees to take less for the house than the homeowner currently owes and in some cases forgives the remainder of the debt.
There are many different versions of how it works in reality. With hardworking agents on both sides that educate their clients at the beginning and keep them updated throughout the process it can be a win-win for both the seller and the buyer.
There are many different versions of how it works in reality. With hardworking agents on both sides that educate their clients at the beginning and keep them updated throughout the process it can be a win-win for both the seller and the buyer.
- Arnold Camps | Asset Accel, "Arnold Camps"
- Contributions:164
how does a "short sale" work?"
Why? Because most short sales are represented by agents that don't know what they're up against. Most short sale buyers are not willing to stick through the process. A short sale also depends on the lien/mortgage holders. How many lien holders are there? Short sales are about the parties and how willing the parties are on completing a short sale.
We only work with certain short sale properties due to the process and the parties in the process.
Good Luck
- paulbalzotti
- Contributions:355
I explain how a shortsale works on my website here. http://www.paulbalzotti.com/What_is_a_shortsale/page_2334434.html
Hope this helps!
Hope this helps!
how does a "short sale" work?
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