Tips on Short Sales
Selling or buying a short sale property is not an easy proposition as the process is complicated involving several issues.
The lender mostly will prefer a short sale to foreclosure if the financial loss is less compared to the huge expenses it will have to incur for foreclosing a property.
If you are a Seller, the following guidelines will help you in this type of a sale.
Information: Before deciding to go for a this type of a sale, you need to gather all information on it, acquaint yourself with laws, Fannie Mae guidelines and so on and be aware of the consequences on your future, on your credit report and so on.
Preparation: Mentally prepare yourself to wait for long as a short sale needs the approval of the lender and this may take a lot of time to come.
Your house also needs to be 'prepared' as during the entire period of this form of a property sale, it should be neat, clean and ready for prospective buyers to take a peek.
Letters and Documents: You need to convey your intention of going for a short sale to your lender(s).
The letter that you write asking for the lender's approval is of vital importance.
Also, you can only go for a short sale when you are financially down, due to a hardship.
There is a need to prove your hardship through a hardship letter, and also prove your financial crisis.
Keep the documents in place that might be required for the purpose by the lender(s).
Also, give the hardship letter a lot of importance.
Take help for writing it, if required.
Consult the right people: For success in a short sale, you need to consult:
Agent You need to choose the right real estate agent for your needs.
Go for someone who specializes in handling this form of a sale so that you get all the help and guidance you need on this matter.
Your agent should give you a comparative study of properties on sale in the area the short sale property is located, a true representation of the faults in the latter, must give you details about the number of lenders the seller of the property has and so on.
Inspection One of the conditions for buying property through this sale process is to buy it in the condition it is in without the provision of any repairs being done.
This gives rise to the need to see the properly and check everything you want to.
Various aspects of the home that need to be inspected are: -Chimney -Sewers -Pests -Roof -Septic and water tanks -Fireplace -Rooms -Garden etc.
Offer The offer that you give on the property should be the one the agent and the seller are looking for! Do not hurry with it.
Think, observe, search, inspect, take help, know and then only place your purchase offer such that it will be accepted! Lender As a short sale depends solely on the lender's approval, you as a buyer need to give time to the whole process.
Also, once your offer is accepted by the seller, you should mention a time frame while sending the same to the lender.
State that your offer will be cancelled if the deal doesn't mature within the mentioned period.
You can do this safely if you have done all the groundwork and have reason enough to believe that your offer is the best anyone can give on the property.
The lender mostly will prefer a short sale to foreclosure if the financial loss is less compared to the huge expenses it will have to incur for foreclosing a property.
If you are a Seller, the following guidelines will help you in this type of a sale.
Information: Before deciding to go for a this type of a sale, you need to gather all information on it, acquaint yourself with laws, Fannie Mae guidelines and so on and be aware of the consequences on your future, on your credit report and so on.
Preparation: Mentally prepare yourself to wait for long as a short sale needs the approval of the lender and this may take a lot of time to come.
Your house also needs to be 'prepared' as during the entire period of this form of a property sale, it should be neat, clean and ready for prospective buyers to take a peek.
Letters and Documents: You need to convey your intention of going for a short sale to your lender(s).
The letter that you write asking for the lender's approval is of vital importance.
Also, you can only go for a short sale when you are financially down, due to a hardship.
There is a need to prove your hardship through a hardship letter, and also prove your financial crisis.
Keep the documents in place that might be required for the purpose by the lender(s).
Also, give the hardship letter a lot of importance.
Take help for writing it, if required.
Consult the right people: For success in a short sale, you need to consult:
- Real estate agent to handle the sale
- Lawyer to discuss the legal aspects
- Accountant to know the tax implications
- Short sale negotiator and specialist to gather information and details
Agent You need to choose the right real estate agent for your needs.
Go for someone who specializes in handling this form of a sale so that you get all the help and guidance you need on this matter.
Your agent should give you a comparative study of properties on sale in the area the short sale property is located, a true representation of the faults in the latter, must give you details about the number of lenders the seller of the property has and so on.
Inspection One of the conditions for buying property through this sale process is to buy it in the condition it is in without the provision of any repairs being done.
This gives rise to the need to see the properly and check everything you want to.
Various aspects of the home that need to be inspected are: -Chimney -Sewers -Pests -Roof -Septic and water tanks -Fireplace -Rooms -Garden etc.
Offer The offer that you give on the property should be the one the agent and the seller are looking for! Do not hurry with it.
Think, observe, search, inspect, take help, know and then only place your purchase offer such that it will be accepted! Lender As a short sale depends solely on the lender's approval, you as a buyer need to give time to the whole process.
Also, once your offer is accepted by the seller, you should mention a time frame while sending the same to the lender.
State that your offer will be cancelled if the deal doesn't mature within the mentioned period.
You can do this safely if you have done all the groundwork and have reason enough to believe that your offer is the best anyone can give on the property.
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