Challenges of a Short Sale
Should you consider if a short sale is a great option?
Is your home still underwater? When you owe more than what your home is worth and you are in financial distress, a short sale might be a good option.
So what do you need to know about doing a short sale? Let's start with some basics. What is a short sale? By now this term doesn't need to be explained to most people. It is simple, a short sale is when a seller owes more than it is worth and you don't have the money to pay the difference.
When is a short sale something to consider for your home?
- If you are late on your mortgage payments and you fear foreclosure.
- When life happens like an illness, a divorce or a job loss.
- You have been attempting to do a loan modification and you have been told no or have heard no response.
- If you are feeling like you are drowning under the stress and debt of your home.
If you are considering a short sale, understanding what to expect is critical. Your short sale team knows how to help overcome them and adjust to the changing short sale market.
- What happens if the value is not accepted? The lender will be doing an appraisal or a BPO - Brokers Price Opinion on your home. The expectations on what your lender, Fannie Mae, Freddie Mac or the investor has is important. There is a strategy to both hitting the price right as well as getting the value correct on your home. The only way to anticipate and adjust to the valuation issues is to do a lot of short sales as well as have connections when issues occur.
- The short approval arrives and now the buyer can't get to the closing table. Your lender will review short sale applications based upon the solidness of the buyer. Cash buyers rule, then those with solid Pre-Approvals are reviewed and Pre-qualifications go to the bottom. Your short sale team has a proven process to increase the chances of actually getting to the closing table.
- There is missing paperwork. This is big. If you are missing paperwork, nothing happens with the file. Time is of the essence. When the bank needs something on your short sale on your home, get it quickly. They will close the file if we miss a deadline.
- The buyer and the seller don't understand how long it can take. An average short sale can take 4 months to over a year. What factors determine how long it takes to get a short sale approved? There are many issues that impact the time including who the lender is, how many loans there are and if there is PMI (Private Mortgage Insurance). Your short sale team knows what it typical and can help both the buyer and seller set realistic expectations upfront.
A Short Sale Expert is key. It will determine whether you are sold or foreclosed. How do you know who can help? Ask a few questions before you hire anyone to help you avoid foreclosure.
- When was the last short sale that you closed with my lender?
- Do you have a hi-level contact with my lender? (We do. We will even show you it on my cell phone)
- Do they have a proven short sale system? What can I expect during the short sale process?
- Who is negotiating your short sale? This is huge. Are they out sourcing or negotiating it in house? Does your short sale agent treat you like a file or a person? Your short sale team has the experience to get you to the closing table.
The Treu Group understand short sales and we can help you avoid foreclosure. You deserve to have the financial stress resolved so call us today.
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Listing information last updated on September 22nd, 2017 at 7:52pm EDT.