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    Short Sale Information

    By definition, a Short Sale is a property being sold or offered for sale below what is owed on the property. Short Sales are typically at some stage in the foreclosure process (sometimes called pre-foreclosure) and aren't yet set for a foreclosure auction. A homeowner is still in a position to initiate the Short Sale process in an effort to mitigate the impact of a foreclosure on their credit. In any event, the homeowner is required to have the approval of their lender and lien holders because they are the ones taking the loss on their loan(s).
     
    Short Sales advertised at a certain price will still need to have approval of the lender and lien holders. The majority of advertised short sales haven't been approved, but if they have been approved, it's a positive selling point and will be advertised as such.
     
    To search for a Short Sale or Foreclosure opportunityclick here.
     

    Seller Approval Package Requirements

    A complete short sale package has to be submitted by the seller or their agent. The package will include the seller's financial statements seller, a hardship letter and an offer from a prospective buyer. The seller has to secure an offer before the lender will entertain a price. The buyer needs to expect a wait of 2-3 months for approval and, depending on how many lien holders there are, it can take up to 6 months.

    Lender Sale Price Determination

    Lender want to know the fair market value (FMV) before they can decide what to accept. FMV is determined by a lender by first ordering a Broker’s Price Opinion (BPO) or appraisal from a third-party not involved with the transaction. The third party valuation should take into consideration the condition & needed repairs as part of their appraisal. An experienced short sale broker should be able to inspect the property and comparable data to come up with an estimate.

    Is a Short Sale Right for You?

    Because the process can take lenders from 2-3 months, and up to 6 months for approval, a Short Sale can be a good choice if you aren't in a hurry and have the patience to wait the process out. Short Sales are looked at on a case-by-case basis to estimate both approval amount and the approximate time-frame. An experienced Short Sales agent and broker who has worked with lenders previously will help greatly. Please contact us if you have any questions or are considering a Short Sale.
     
     
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    Tags: short sale  pre-foreclosure  foreclosure 


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