Short Sale 101
A Short Sale is a transaction that occurs between 3 parties; Seller, Buyer and the Sellers Lender(s).
In Short (pun intended) the Lender is willing to “sell” the property for less than the mortgage balance amount.
Cool?
Good, so this is how it should work:
1) Home Owner (seller) and Lender have a serious conversation about the financial position of Home Owner and their ability to pay current mortgage.
2) Lender attempts to mediate some financial pressure by offering incentives to Home Owner to continue paying current mortgage.
3) Once these incentives are not attainable, Home Owner and Lender agree to entertain a Short Sale.
4) Seller provides all required documentation to lender.
5) Lender provides all required guidelines to Home Owner.
6) Home Owner with in lender guidelines markets their property in an attempt to gain a purchase offer.
7) Once purchase offer is procured, said offer is presented to lender for review.
8) Lender will review terms of purchase offer, value property and make a final determination as to validity of purchase offer.
9) If lender agrees with the terms of the purchase offer, they will inform all parties of any closing conditions and if conditions are met/accepted the property goes to closing.
Simple right?
HA!!!
Should be but lots of stuff gets in the way, like this.
In the real world each Short Sale transaction is different, complete with individual nuances that must be strategically navigated and expertly negotiated.
If you need help with a Short Sale drop us a line we’re really good at it and that’s the short of it.
