Short Sale Timeline Estimates By Lender
Everything you need to know about a short sale
(1) Foreclosure: This is a Court Judgement against you and will follow you for life, plus a big hit on your credit and you could be responsible for the balance of the bank sale of your property.
(2) Walk away: You walk away and let the bank chase you. Big hit on your credit and a Court Judgement against you.
(3) Deed in lieu: You give the bank the keys to the property, you could be responsible for the balance of the sale and a hit to your credit.
(4) Short Sale: You have to find a qualified negotiator who can talk to your lender. This is no cost to you. If they ask for money up front, do not walk but RUN from them. This is a FREE service. I get paid by the Bank to close your property on a Short Sale.
#4 Is the best option. Your property gets a bank approve sale value, once sold your credit report shows that the property was paid off. ( the credit companies do not know who paid the property, just that it was paid off. Your credit score start to go up. You are free and clear
depending on the lender or lenders if there is a 2nd on the pproperty responses can be fairly quick to fairly long for the response.
i tell my buyers if they are in a hurry not to do them as they just get frustrated.
i am a certified short sale specialist.
if i can be of more help please feel free to contact me.
all the best,
premiere plus realty
The short sale is essentially still a sale between the seller and buyer, only it needs approval by the lender who will receive less than what is owed on the morgage. They usually waive the deficit, it is always wise for the seller to work with an attorney.
The process can be long, since the insurance co., audit dept, investors, etc. all need to review the sale prior to acceptance. The buyer needs to be patient, but is cautioned that there is no guarantee until closing that the sale will go through. The lender usually orders a BPO or appraisal to determine market value in reference to the offer. This is just a snapshot of the process I hope that you find it helpful.
Mary Horesco, Downing-Frye Realty, Inc.
Scott Riddle PA, ABR, SFR
Cell: (239) 289-1849
e-Fax: (239) 390-0027
Find a property
Make an offer
Wait, wait, wait.....
Wait, wait, wait.....
Wait, wait, wait....
Be sure to have a date in the offer so you can cancel it if you have not had a response by a time certain and you want to buy something else. Banks move at their pace, not yours. There may be competing offers, too!
Work with someone who does short sale often.
There are three parties involved in a short sale, the seller, the buyer and the seller's bank. The seller's bank is the entity that will be short. At some time in the past, they loaned the owner/seller money to buy the property and now they will not get all their money back.
With this knowledge, you will understand that the first part of the transaction process is straight forward. The buyer makes an offer (with contingencies) and the seller accepts.
Then the short sale process starts, because the bank has to approve the sale. This can be a lenghtly process - or not..... I have closed short sales in a couple of months and also had one that took 11 months! You just never know, although there are indications for an experienced agent as to how long it will take. There are some circumstances that we have no contol over.
In order to ensure the best protection for you, the customer, I work with an attorney (usually at no cost to you) to ensure that you do not receive any unpleasant surprises, such as tax consequences that you were not aware of.
Legal counselling is a requirement for transparency in a short sale transaction.
Make sure that you interview the real estate agent you use to ensure that they are truly experienced in short sales. Some agents prefer not to deal with them. Others, like myself, enjoy the challenge and the satisfaction of bringing the transaction to a positive close.
This is not something to be ventured without professonal guidance.
Jeannine de Alwis, GRI, SFR
(SFR-Short Sales & Foreclosure Resource)
Premiere Plus Realty
239 298 6034 - Direct tel.
A good Realtor will research the situation with the listing agent to determine viability of the sale. Qualified agents are getting short sales closed.