Have you been having a hard time paying your mortgage? Short
sale is considered to be the best solution to this problem. A short sale is a
process wherein the proceeds are less than the actual balance owed on the
mortgage that covers the property. This may be the right option for some
people. However, is this really the right option for you?
Before putting your home on a short sale, remember that this
takes a lot of work and time. There may be no guarantee that this closes in the
end. Before you engage in this transaction, you need to first consult a lender
regarding the foreclosure alternatives. Discuss with him the process of modifying
the loan, refinancing the mortgage, negotiating the deed of foreclosure. Just
like other short sales, this may present its benefits and drawbacks.
Having enough time in selling your home is needed. Short
sale may take a few months or so. Will there be enough time in marketing the
property and finding a buyer? The negotiations with the lender automatically
stop the foreclosure process of the lender.
Call the lender. The trustee must also be contacted in
managing and postponing the process of foreclosure. This way, the short sale is
given enough time.
The moment that the short sale closes, this is the only time
that you can move. If your goal is to still stay at home for months, then
putting your home on a short sale is a better decision.
Approval from All
Parties
In putting the home on a short sale, getting an approval
from all parties that are interested in closing it is a must. It may take an
effort and time in closing a short sale because it requires another interested
party. There is only a need to identify the parties interested in the property
and call them earlier before the short sale process.
Putting your home on a short sale may not be an easy
process. Here is an overview on how to short sale your home.
- Discuss The Property to People
After going through the financial
hardships and finding out that the home is underwater, the first step to
consider is on talking to three important parties such as a real estate agent,
real estate lawyer and CPA.
Every state has its specific laws
pertaining on the ability of the lender in coming after the borrower. Thus, it
is strongly recommended that those who are interested in selling their homes on
a short sale should discuss the situation with these people.
In fact, it is even better going
with a bankruptcy or foreclosure filing. These three parties have their
essential role to play in moving the short sale forward. Learning about this
step at the earliest time possible is necessary. This way, there is no need to
spend more time in going to another route.
If the short sale is the best
solution for your home, then it matters choosing the best agent. While others
consider themselves as short-sale experts, there is still a need to evaluate
them properly. Search for their titles that are granted after they completed
their courses.
Beyond organizations names and
titles, it is vital to ask a few important questions such as the number of
short sale listings that they had. It is also good to ask about their phone
numbers and the names of their last 5 short-sale listing customers.
- Learn About the Real Value of the Home
Before engaging in the long process
of putting your home on a short sale, there is a need for you to evaluate its
value. This is often done in many ways. There may be a home value generator to
use that lets you compare it with other similar values of neighboring houses.
Better yet, find the real estate broker that gives you further estimate.
- List the Property at the Valuable Price
The key step in the process of
putting your home on a short sale is the price. The price must be above the
market value. However, it must be lowered at the pre-determined intervals until
then that the offer is received. This gives an impression to the bank that
you’re up to selling the home at an attractive price. The appetite of the bank
is satisfied for the possible profits.
After an offer is already received,
it is now the time to getting the package together. The lender often requires a
lot of documents such as tax returns from the previous years, hardship letter
two pay stubs and the like.
When all things are followed and
done, the package could be around sixty or eighty pages long. It is a must to
prepare all of the required documents in the package. The banks are interested
in looking for the reason of putting off the short sale.
- Wait
In putting your home on a short
sale, it matters being patience. The process requires more of your patience.
This is the most important element in the short-sale process. It takes about
thirty to forty-five days in order that the lender gets the short-sale package.
The information should also be
placed on the system. Apart from it, the sale should be assigned to the
negotiator. There are times that the process takes up to three succeeding
months.
- Negotiate
The negotiator may offer the
so-called “broker-price opinion”. Apart from this price, he or she may offer an
appraisal of the home. This is when the necessary information is already
presented to the lender. This is the time that the short sale is approved.
For a low offer, the lender may
present a high sale price that could lead to back and forth negotiation. Even
if the buyers come and go, do not get disappointed or discouraged. Instead,
keep the agent close. This is just a part of the short sale process that takes
six weeks. Others also put their home on a short sale for years.
Short sales are helpful in avoiding
eviction and foreclosure. Losing the home at a public auction is also avoided.
Before putting your home for a short sale, it is important to pay attention on
all of the steps above! We hope this information was helpful in assisting you to learn how to short sale your home in Orlando.
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