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Answers (4)
Best Answer
- Tammy Gore, "Tammy Gore"
- Contributions:11
A Short Sale is a request from the Owner of record asking their mortgage company to accept a pay off for less than what is owed. This is a process that is on a case by case basis. A short sale listing sales price or agreed upon contract price is subject to the Seller's mortgage company's approval. This is an excellent way to pick up a great savings on a property when you have time to wait for the Seller's lender to reply with an answer. Some companies take longer than others and it will also depend on what phase of the request the Seller is in.The short sales I have worked on have not cost the Buyer any additional cost. The contract negotiations work the same as any re-sale with exception to all of the monies on the Seller's side must have their lender's written approval to proceed. Keep in mind most short sales will be sold without repairs due to Seller's lack of funds. Buyer's however can make repairs but you should consult the parties that are representing you for details. Good Luck!
- Joan Shorter, "JoanShorter"
- Contributions:10
Before making an offer on a property listed for sale as a "short sale", make sure to find out some information on the sellers. In order for the seller's lien holder to be persuaded to consider, negotiate, and accept a short sale, the sellers must do the following:
- be behind on their mortgage
- have a compelling financial hardship
- must be willing to submit their bank statements, tax returns, retirement statements, etc to the lien holder for verification of financial status.
If the seller simply wants to sell because of values, and buy another home in the same vicinity, then their lien holder will not approve the short sale. Remember that even those with a compelling financial hardship who are behind on their mortgage and do submit all requested documentation often get denied even in the current market.
Remember, while you are waiting on a short sale to be approved, you could be missing out another well priced property you love. As always, don't shop for a foreclosure or short sale (don't shop price) - shop for a home you will love in an area that suits your lifestyle, at a price you can afford.
- be behind on their mortgage
- have a compelling financial hardship
- must be willing to submit their bank statements, tax returns, retirement statements, etc to the lien holder for verification of financial status.
If the seller simply wants to sell because of values, and buy another home in the same vicinity, then their lien holder will not approve the short sale. Remember that even those with a compelling financial hardship who are behind on their mortgage and do submit all requested documentation often get denied even in the current market.
Remember, while you are waiting on a short sale to be approved, you could be missing out another well priced property you love. As always, don't shop for a foreclosure or short sale (don't shop price) - shop for a home you will love in an area that suits your lifestyle, at a price you can afford.
- Michael & Rebecca Straley, "Michael65341408"
- Contributions:109
A short sale is an arduous process of selling a home when the seller has a hardship and owes more than market value. It may take many months and you must be very patient and all parties need to cooperate. If you are a buyer you must make sure the lisiting agent is experienced in the process or it may be a waste of time. Assessing the hardship is step one and then pinpointing the market price for short sale acceptance is key. Sometimes even after signing a contract with the purchaser, there may be further negotiations when the lender reviews the file. Bottom line is the seller gets nothing but reflief and the buyer generally gets a good deal! The Realtors get paid - but it is a lot of work and the mortgage company moves a property into healthy hands! This is a great way to heal our economic woes and is better than the foreclosure process, for all involved.
- jebon
- Contributions:3
A short sale means the seller's lender is accepting a discounted payoff to release an existing mortgage. Just because a property is listed with short sale terms does not mean the lender will accept your offer, even if the seller accepts it.
what is a short sale
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