Maybe you have heard about the short sale process and you have found it to be very interesting? Maybe you are so interested that you want to know the steps on doing a short sale process but have a hard time finding one? If you have said yes then this article is perfect for you.
Preparing a Short Sale Package
Before a short sale begins, the process starts with the preparation. In this preparation, the one who initiates the short sale usually is required to have many things prepared which depends on the bank’s short sale guidelines. Usually, they would ask for a letter of authorization which enables your agent to start a negotiation with the bank. They would also ask from you a seller’s hardship letter, a finished financial statement, at least two years of tax returns, payroll stubs, bank statements from the last two months and a market analysis or a list of comparable sales.
Preparing the Short Sale Offer
Before a short sale actually happens, much time and thought should be invested in preparing for the short sale offer. This is a part of the short sale process where it is very crucial. It is wise to first ask your agent on the comparable sales on nearby properties or at least the median price in order to have a reasonable figure in your short sale offer. Banks would always want a value that is close to the market value but not necessarily the same as the market value because by making it a bit lower, you encourage more offers from potential buyers.
Waiting Period
In a short sale, the approval of the bank is the most crucial of all. That is why if you want to go into short sales, you must always put into mind that patient is a virtue. Threatening the bank to speed up the process or threatening the bank that you will cancel the deal if it would take much longer will not speed things up at all. The first thing that usually happens is that the bank accepts the files and receipts sent and then sends a negotiator; this is where the talks start and if all goes well, you get a short sale.
For more information about a short sale process, hire a professional company now.
After the real estate crisis which hit the country few years back, many people have been left with a property which they want to get rid of. Many are even facing foreclosure and dread the fact that foreclosure will have a severe negative impact on their scores. In such a situation, the option of short sale has come up s a great help for the homeowners. This option will help the homeowners sell off their property and it won’t have much negative impact in their credit. The scores may get lowered by 80-100 points. Moreover, unlike foreclosure, the homeowners may have to wait for 2-3 years to qualify for any other type of mortgage.
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