Buying a Short Sale Property
If you are considering Buying a Short Sale property, you should seek a Realtor experienced with Short Sales and its processes. If the property you choose has been set up properly by the listing agent you can expect the sale to go smoothly, expediting the close. Advance work with the mortgage holder is key in making the process go smooth and that is where the listing agent's experience is critical. Acceptance by the mortgage holder can be very quick when this process has had the critical focus it needs. If the property has not been set up properly for the short sale the process will be slow and can take more than 90 days just to receive a response from the lender regarding your offer. Coming into the deal with cash can have a positive influence with the acceptance, but it is not necessary. When buying a property always consult a real estate attorney.
Although you will execute a sales contract with the seller, it is the lender(s) who make(s) the final decision and validate the contract. Many times there is more than one lender involved and each must be involved in the contract acceptance.
Selling a Short Sale Property
If you are faced with a foreclosure DO NOT WAIT, consider Selling your property thru a Short Sale. There is no reason today to lose your property to a foreclosure and ruin your credit! You should IMMEDIATLY consult a real estate attorney to see if this is the best course of action for you and to learn the possible ramifications involved in selling through a short sale. You will need to contact your lender to see if you will qualify to sell your property through a short sale (see below). Finally, select a Realtor experienced in marketing and selling short sales. Always communicate with your lender on your intentions. They do not want your property and will generally be happy to work with you through the sale process.
Plan ahead as most lenders will require the following documents:
- Most Recent (2) years tax returns
- Letter of explanation and the nature of your hardship
- Most recent (2) pay stubs
- Most recent (2) bank statements
- Letter of Authorization (if using a third party to access information)
- Estimated HUD-1 (Settlement Statement)
- Copy of Listing Agreement
- Copy of Contract and/ or Offers to Purchase