However, and depending who the lender is, and what type of property you have....
If you have an HOA and you've been delinquent, the HOA can file a lien against the property and even file for foreclosure. This is why we encourage homeowners to keep up with their HOA payments because most short sale banks won't pay for HOA fees and fines.
If the buyer is using an FHA loan to buy your property, there are some stringent requirements. You may be asked to fix certain things before the loan could be granted.
Your buyer may ask for some repairs. If they are minor, you may consider acceding to the request to keep the file moving forward.
You should also maintain the insurance on your property, otherwise the bank will get a force play insurance and bill you.
It really all depends on the type of property, how much you owe and to whom,
Remember, you are asking the bank to forgive your loan....during this process, you are applying to see if you qualify. Not all people who apply are approved.
http://www.shortsalespeople.com offers great information to questions such as what is a short sale and how it works, check it out .
By the way, I would recommend using a real estate agent, they will take a huge load off your back and not cost you anything. If you don't have one, the people on that website can refer you to a short sale specialist in your area.
Good luck to you and God bless!
After reviewing your last two questions, I hope we haven't confused you. A short sale is not a 'right' and requires your lender(s) approval. In order to get approval you will need to prove financial hardship. The approval process requires you to submit various things to the lender including tax returns, bank statements and pay stubs. A realtor will be able to assist with this process. As mentioned there may or may not be any out of pocket costs to you, the seller. That said, there are potential tax consequences. It is recommended that you talk to a tax professional before proceeding.
Best of luck,
It is assumed that the seller in a short sale is in financial distress and they are not expected to pay anything at closing. YOu must look into the HAFA short sale program as you may be eligible for up to $3,000 in moving assistance from this government program, learn about it here: http://www.shortsalespeople.com/portfolio_2/how-the-hafa-sho
Good luck and God bless!
PLEASE SEE MY BLOG FOR A FULL LIST OF TIPS AND ADVICE HOW A SHORT SALE WORKS.
So again, contact a real estate lawyer in your area to handle your transaction, and he or she will be able to provide you with the answer to your question.
Can anyone in Monterey County supply this fellow trulian with the name of a good attorney?
Best of luck
You need a good agent who understands short sales, how to negotiate with the bank..and will guide you every step of the way. If this is not what you have..find someone who you feel has your best interest at heart.
I just closed a HAFA Short Sale and if you qualify you should insist on getting one because not only will you be paid $3,000 but the bank waives the right to ever perform a deficiency judgment against you. That is the true value in a HAFA Short Sale. Also, they have to decide in 10 days or less so the process is quicker which means it will be less of a hit on your credit report.
I have been doing Short Sales for many years and only one client was asked to make a cash contribution. My experience has been that if a bank sees that you have cash in a saving account in the thousands range there is a chance you will get asked to pay a cash contribution. However, keep in mind that you can refuse and still be awarded the Short Sale, the amount can be negotiated down or at any time in the process you can change your mind and not go through with the Short Sale should the bank insist on a cash contribution. Also, the Realtor's or the buyer can contribute on your behalf with the permission of the Short Sale lender.
I hope I answered your question clearly?