My husband and I just put in an offer for a house that is a short sale. The seller approved, and today the realtor sent the paperwork to Countrywide for them to approve it. I heard it can take months for them to respond, but the house already has an appraisal on file at Countrywide and I was told that Countrywide just recently got a short sale “department” to speed up the process. Anyone have any idea or estimate of how long we will be waiting for a response?

www.ShortSaleDemo.com Short sale (real estate) Short Sale, Short Sales, Foreclosure Short Sale, Foreclosure Short Sales, How To Do A Short Sale, Short Sale Calc, Short Sale Calculator, Short Sale Offer Wizard, foreclosure short sale, short sale credit, deed in lieu of foreclosure, short…

If it makes a difference, there are 2 lenders (a home equity second) and this is a single family residence (no HOA) with a market value of around $850,000 (do banks, as they should, prioritize the more expensive properties/larger loans sizes?). Thanks for any personal experiences or knowledge or a pointer to any relevant, recent news reporting.

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If you have been looking at the real estate market, I’m sure you have noticed that many of the homes up for sale are advertised as short sale. Buying a home for under the amount that is owed on the real estate is called a “short sale.” In the current real estate market, there are many short sale options open to a potential home owner. Adjustable rate mortgages and the economic downturn have caused higher than normal foreclosure rates. If you are in the market to purchase a home, this is the ideal time to exploit the market to your own advantage. With some precise research and an open mind, you may find the home of your dreams at an unheard-of price.

Locating a Short Sale Quickly
 
To initiate the short sale process, meet various real estate agents. Many real estate agents already are knowledgeable in dealing with properties that are short sales. Selling agents often have pre-existing association with the lender that is holding the mortgage. You want to use a realtor that has experience and information on how to get a property that is a good value. Once you settle on a realtor, let him or her know right away that you are looking for a short sale property. This will help the realtor find an ideal property more quickly.

Short Sales are Often Bargains

A short sale will often be offered at a good price to the buyer since the bank does not want to have their assets tied up in the property. A bank is vulnerable to losing a substantial amount of money in a foreclosure proceeding. The listing price is minimal and so you will not have to try bargaining with a seller over the price. The bank wants the property sold as quickly as possible to eliminate losing any more money.

What to Anticipate When Buying a Short Sale Property

The process of buying real estate in a short sale is a little different than purchasing a home from an individual because you dealing with an corporation instead of a person. Once the bank accepts your offer, the title company working with the bank will handle all of the title and escrow details of the purchase agreement. With a short sale, as a buyer you have to proceed swiftly. The title company and the bank may not act as quickly owing to the large amount of paperwork involved in selling a property in this manner.
 
To speed up the process of purchasing a home in a short sale, get all of the required documentation in as quickly as you can. Generally there is a month or more before your closing date but that does not mean that nothing is going on. There is a complicated behind the scenes process involved in the mortgage documents and the transfer of the property. Keep in touch with your lender and realize that you are dealing with a corporation and not a person so the process will be a little different. The time before closing will slide by, and you will be in a great new home.

Short sale is considered an inevitable option in cases when homeowners cannot comply with their monthly dues and financial obligations. Although the eventual effect of short sales in the credit standing of the borrower is not as bad as that with foreclosed properties, it is still a dreaded reality. Yet with the trend of economic uncertainties experienced in a global level, the inevitability of short sale is becoming more apparent and increasing.

Even though lenders and borrowers both do not want the occurrence of short sale in their investment, there are still facts that the latter need to know. These facts are often hidden and kept from them by lenders in order to protect their own interest in the process.

What facts lenders do not disclose about short sale?

It is imperative to know that lenders and banks equally dread short sales because of its gradual impact on their venture. More than anyone else, lenders are the ones greatly affected whenever properties are set for short sales. The effect is on the cancelled loan and the interest rate that is supposedly due for payment. Hence, in order to prevent short sales, here are some of the things lenders do not divulge to their borrowers regarding the pending home sale.

Timeline. One of the delaying tactics utilized by most lenders and banks is the long period of approval for the short sale. Banks have loss mitigation departments that take care of the issues and concerns regarding short sale. It requires innumerable documentations and other forms of requirement before they grant the short sale approval. In such cases, it is a disadvantage for the seller, who in spite of getting a potential buyer for the property, may still face the possibility of losing them due to extended period of waiting. This is often taken in a subtle way, but it is surely an effective method of preventing short sale. Market value. Lenders do not divulge salient information which they consider private and confidential such as the market value of the property listed for short sale. They may also include the expected sale margin for the property which is likewise important. The lack of these significant information often shoo away potential buyers causing delay for the sale. Closing cost. In every home purchase, there are definitely closing costs, charges and fees required for the process of the acquisition. This is another important fact that most lenders are not willing to disclose to borrowers to prevent short sale. Buyers often find themselves in compromising situations causing them to back out from the deal due to a longer application process.

Lenders and borrowers definitely have a vital role in instances of short sale, however both parties are always in constant lookout for ways to protect their respective interests. In cases when lenders deprive you of important information you need to know especially about short sale, there are real estate professionals and consultants you can ask to remedy your dilemma and bring possible solution to your problem.

How do you avoid foreclosure and pay the remaining balance of your loan at the same time? A short sale might be the best option. A short sale happens if the value of the loan balance is greater than the sale price of the property. This does not sound as a viable option for the lender. What will you do to make him approve of your proposal? Fortunately, most lenders would agree to this arrangement. This is better than losing more if the home is foreclosed.

But then again, you have to be ready to present your short sale package to the lender. Keep in mind that not all homes qualify for a short sale. In some instances, lenders would not agree to this especially if they know that they can earn more if they foreclose the home. It is your job to change their minds.

The question is how do you close the deal? What are the things you need to bear in mind? The best thing to do is to hire someone to represent you. A real estate professional will be able to present your package well and he knows how to negotiate with the lenders. You will also be certain about the next steps you should take.

If you are negotiating in behalf of a borrower, do not forget to bring an authorization. See to it that you have all the necessary documents to present a strong package. Check that you have the medical documents, divorce decrees, tax returns and supporting financial statements. The documents will vary depending on the situation that your client is in.

Aside from the documents and other requirements, you have to be prepared as well. Remember, no matter how valid your package is, this may not be approved if you do not have a good relationship with the lender. This is the advantage of being represented by a broker. He has been negotiating with lenders so he knows how to convince them.

A loss mitigation officer will talk to you and discuss the losses that the lender will incur. You have to hear him out and be professional about it. After listening to him, you will be given the chance to present your side. It is essential that you know all the documents you have. Be ready to answer questions as well.

Trust the package you have and present it well. There can be cases where in the lender will not agree with the value you have presented. Do not be easily swayed. If you know that, your calculation is right, defend it. Present additional evidence such as photos as to why you have presented such values. They will surely reconsider after that.

After the approval, make sure that you act on it right away. It is important that you sell your property because the short sale comes with a due date. Normally, the lender will give you thirty days. Do not waste any time and find a buyer who will be willing to pay the house at the pre-determined value.

Short sale will help prevent foreclosure. However, you have to be ready to present it convincingly.

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MYTH: I must stop making my mortgage payments before the bank will approve a short sale.

TRUTH: You do not have to stop making payments on your home in order for the bank to approve a short sale. What the bank needs to see is a solid reason why you are unable to continue making your monthly payments and/or must sell (loss of job, relocation, divorce, etc.). Due to the current market conditions the banks generally understand why the short payoff is being requested – whether you have missed payments or not.

MYTH: If I am doing a short sale I am in foreclosure or pre-foreclosure.

TRUTH: A short sale is simply requesting the bank to accept a total payoff of your loan for an amount less than what you owe. You are only in foreclosure when you receive the foreclosure notice from the bank.

MYTH: I have a second mortgage or home equity line so I can not do a short sale on my home.

TRUTH: The majority of people we work with have both a 1st and 2nd or home equity line. In this situation the 1st mortgage generally approves an amount for the 2nd and we negotiate between the two. The 2nd mortgage company is accustomed to taking a much lower payoff.

MYTH: I will receive some money back at closing.

TRUTH: When you sell your property as a short sale you are not entitled to receive money back at closing because there is no equity in your property.

MYTH: The bank will not pay the commission for my real estate agent and/or the costs of listing the property with a real estate agent will be passed on to me.

TRUTH: A real estate agents commission is taken out of the banks proceeds at close of escrow. There should never be an out of pocket expense for a seller who lists their home as a short sale with a real estate agent.

MYTH: Short sale homes are priced lower than other homes in my area.

TRUTH: Short Sales are priced in line with other comparable properties in your area. Your mortgage company will do their own version of an appraisal of the property to make sure they are getting a fair payoff on the property. Length of time on market, condition of the home and how quickly the Seller needs to close are all conditions that affect the price of every listing – short sales included.

MYTH: I have a foreclosure date approaching so there is not enough time to do a short sale.

TRUTH: Because it is generally far more expensive for the bank to foreclosure on your home than to work with us on a short sale we can postpone the sale on your home in most cases while we are marketing and/or negotiating your short sale.

Short sale is popular today. This is because more sellers are inclined to sell their property due to the deterioration of its value. Those who sell their property are not limited to those who have defaulted. There are also those who have decided to sell because the balance of their mortgage is more than the value of their property. Several parties are also interested in purchasing such properties. This is because they are cheap and they can sell it for a better price after they have made some renovations. However, it is not easy to find a closable short sale. Remember that the lender will have to approve this.

In order for you to understand this, you have to know what it is. It is a state wherein the homeowner sells the house for less than the remaining balance of his mortgage loan, provided that his lender agrees to it. The permission of the lender is necessary because he is going to collect a discounted payment for the balance of the loan.

You will find short sales in the MLS. However, only the real estate agents have access to this. If you want to check this out, you have to ask your agent. Although this is the case, you can still have a look at the list. You can check out online feeds of the MLS. Several short sales are posted online. There are also instances when the terms short sale is not used. The terms Notice of Defaults, pre-foreclosure and headed for auction are often used. You have to check the categories as well. Seeing the term short sale in the site does not mean that everything there is short sale.

Finding one does not guarantee you that you will own the property. These properties are difficult to close because of the different requirements needed. In order to increase your chances, hire a good short sale agent. He will protect your interest and will assure you that all options are presented. All the information about the transaction will be made known to you as well, making sure you do not miss out in any of the technicalities.

You should also bear in mind that making an offer does not guarantee that you will be able to purchase the house. The lender needs to approve it first. After giving an offer, make sure that you provide copy to the lenders as well. See to it that the offer you make is acceptable for them. Lenders are losing in this transaction and they want offers that would minimize the losses.

You should also be warned about the fraudulent transactions. Many sellers would ask money from you in exchange for a guarantee that you will get the house. This should not be the case as you are not required to pay the seller anything prior to the closing. This is why you need an agent so that you will know the right steps to be taken. The seller cannot assure you of a sale as the lender still needs to approve his short sale package.

What is more difficult is closing a short sale deal. In order to increase your chances, hire a short sale agent and make good offers.