Profile picture for vincecam

please explain a short sale?

special requirements for purchasing a short sale.
V.A. info
  • May 29 2011 - Valley Village
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Answers (7)

Profile picture for SteadyState
Short Sale:

Some good definitions below. Remember that if you analyze a short situation some parties gain and some loose:

Loosing Side
Home seller - credit is ruined; loss of down payment; stress etc.
Bank -  The difference between what was owed and what was paid must be realized a a capital loss
Tax payers - Bail out the banks and semi-governmental organizations that guarantee the loans
Gaining Side
REAs: a) Made money 6% of sale when home was sold to buyer b) made ~6% when home was short sold
Mortgage Broker: (if used)  a) Made commission when the home was funded to buyer b) Made commission when loan was funded for buyer who bough the short sale
Inspectors/Appraisers:  a) Inspected/appraised the property when sold to buyer; b) inspected/appraised the property when it was sold short
Title Company:  Record and transfer title two times


  • June 04 2011
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Profile picture for Theodorere
thanks for comments..
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  • June 04 2011
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The VA loan program would require a home to meet certain physical conditions. Sometimes a short sale would not meet those conditons. So if you are doing a VA loan and want to do a short sale offer on one in really good condition.
  • June 02 2011
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Profile picture for Theodorere
There is nothing special at this time but i want to mention one thing that as i received the information then i will inform at that spot..
  • May 31 2011
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Purchasing a short sale with a VA loan is just like any other loan.  The VA does not discriminate based upon how the property is sold.  However, many short sales are not in the best of condition and this is where you could get stuck.  VA, nor any other lender, enjoys giving money on a home that may have 'issues'.  I would recommend proceeding as normal, but with your eyes wide open.
  • May 29 2011
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Today many homeowners find themselves upside down in their property and in financial hardship due to a challenging economy. They are uncertain as to what to do, and realize they cannot maintain the monthly payments for a home that is worth less that the actual loan balance. Are there any helpful answers to resolve this situation?

In times like these when many are experiencing a financial hardship, struggling home owners are turning to the financial institutions which financed their home seeking a helpful remedy.

Today many who need to sell property which has devalued are doing a Short Sale, which is the ability to sell the home for a fair market value and the bank accepts less than what is owed on the mortgage.

One of the criteria a bank looks at is a seller's hardship which must be a legitimate hardship due to one or more of the following reasons: unemployment, reduction in job hours, death of a spouse, decline in business if self employed, a medical or recent disability or illness, or divorce.

In a Short Sale you cannot walk away with any monies from the sale, but are free from the non-recourse debt against the home.

A Short Sale is not like a Foreclosure. A Foreclosure is very detrimental to your credit score. A Short Sale is not reported on a credit report but is usually reported as "debt settled" which is less damaging to one's credit.

How long could this process take? What information will you need to submit to find out if you qualify for a Short Sale? Are you not even sure what questions to ask? Please feel free to call with no obligation. I am here to provide you with options and possibilities.

 

  • May 29 2011
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When a person who owns their home is no longer able to pay their mortgage and doesn't want to go into foreclosure (which is when a bank simply repossessed a home after a number of unpaid payments), a short sale is when the owner of the property goes to the lender of their mortgage and asks to sell their property for less than what they still owe the bank (because it today's economy a lot of people still owe more than what their house is worth). Then they find a buyer (who can't be a relative of the seller) and the buyer's offer is submitted to the bank for approval. The process is longer than a standard sale or a foreclosure (can last several months) and sometimes very frustrating to the buyer. Even with the new HAFA program for which the seller has to get approved and promises to get an approval in 2 weeks and even puts extra cash in seller's pockets to move out) is lengthy and requires lots of patience. Let me know if I can be of any assistance. Good Luck, Mya
  • May 29 2011
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