WABROKER

Posts Tagged ‘short sale process’

A short sale from the seller’s viewpoint is much like applying for a loan, only you fill out paperwork and show information that lets the bank know that you can not afford the payments. You need to gather income and expense information, provide pay-stubs and bank statements and explain why you can no longer make the payments as agreed.

Once you gather this information you must also submit an offer to purchase the property and a listing agreement showing that the property is being adequately marketed to attract offers. Some lenders take the information via fax while some have websites where you can upload them. The problem is if you have more than one loan you mus do the same thing for each lender and each lender may have a different way of doing short sales.

Provided you can learn all of this, and also have the time to devote to it, there is a need for you to be highly organized and patient. Read the rest of this entry »

The short sale process differs from a regular sale in that once the buyer and seller agree to terms the short sale lender has to review the offer and decide whether or not it is acceptable to them.

Remember in a short sale the house is facing imminent foreclosure and the lender is checking to see whether or not it makes more sense for them to allow the short sale or to go ahead and foreclose with all the expenses to the lender that are involved in actually foreclosing and re-marketing the property.

Each lender has their own policy so the process differs from one lender to the next. Even the lenders that have a streamlined process will not be able to give you a quick answer in most cases. Read the rest of this entry »

The short sale process is very simple.

Give the lender whatever they ask for. Do whatever they say and hope for the best.

Perhaps its time to reclassify short sale negotiators as short sale negotio-beggars.

Negotiating is too strong a term for what we do. Actually we provide things that are asked for and try to explain others mistakes like the BPO providers that give ludicrously high (or low) statements of value. Then we try and communicate to the sellers and buyers why the lender takes so long, asks for such odd requests and then forecloses and sells the property for $30,000 less than what the short sale offer was.

Here are the rules of a short sale in the current short sale process. Read the rest of this entry »

There’s been a lot of talk recently about mortgage short sales.  Talk of relief and of fraud.

The truth is that short sales exist only as an aspect of the foreclosure process. Even if a property is in good standing,  if a short sale is requested most likely the reason it is considered is due to the possibility of an impending foreclosure.

What is a mortgage short sale? It’s when a property is sold for a price is lower than the amount of the mortgage or mortgages if there are more than one.  For a house to sell for less than the mortgages you must have the mortgage holder’s permission.

This process of getting the permission before the property is foreclosed upon is known as a short sale. Read the rest of this entry »

To obtain a mortgage short sale, it helps to understand the process.

First clearly defined only a few years ago, the job description for “loss mitigator” or “sale negotiator” continues to undergo constant revision. Currently, banks are struggling to process huge amounts of paperwork for all types of foreclosure and short sale situations.

Unfortunately, each short sale lender processes information in a unique way. To add to the complexity of the transaction, most real estate agents have their own understanding of how the process works.

However, some things remain the same no matter who is handling the transaction.
1. Have an agent list the property for sale–Lenders want to see that you are trying to sell the property on the open market to get the best deal possible.

2. Find a willing and able buyer—Buyers with cash are preferable, but at least a strong loan package is necessary.

3. Short Sale Package—This set of financial worksheets must be completely and properly filled out.

Ideally, you should find a team of professionals who have access to current lender policies on short sales. This team should be able to collect and assemble all of the necessary information for you. With a skilled negotiator working hand-in-hand with a willing and able Real Estate professional, short sales will most often be completed.

Remember, a short sale does not mean that the process will happen quickly. These transactions often take longer than typical Real Estate sales because of the added bureaucracy during the beginning stages of the process. A short sale escrow can potentially last 60, 90, 120 days or even longer.