Short Sales Information
Don't Foreclose On Your Property!
With the economy declining and home prices plummeting many banks have implemented short sale programs into their systems. These programs allow sellers with financial hardships to sell their homes for less than what they owe on the home. These programs are designed to help sellers like you so why not take advantage of them?
Priceless Realty is a leading seller in short sale properties and has helped many sellers successfully through the process. With the Priceless Realty Short Sale Program we have teams dedicated to short sales and will walk you through the process while also negotiating on your behalf to the bank.
We look forward to working with you and feel free to contact us for a FREE consultation about your home.
What is a Short Sale?
A short sale occurs when a property sells for a price that is insufficient to pay back the loan(s) secured against it (or any other liens against the property, such as delinquent property taxes, Homeowners/Condo Association Fees etc.) as well as standard sales closing costs. In such a case, in order to complete the sale, the Seller, must either: (1) come to the closing with sufficient funds from other sources to cover these shortfalls; or, (2) the lender(s) must agree to forgive all or a portion of the amounts they are "short" or make other arrangements for repayment ( such as execution of a promissory note). This second alternative is commonly known as a Short Sale. The Sellers lender will generally not allow the Seller to receive any proceeds or otherwise obtain any monetary benefit as part of a Short Sale.
Is A Short Sale A "Better Deal" Than Other Properties?
Buying a property trough a Short Sale may be a "good deal", but that is not always the case. First, there is no assurance that a Seller will obtain approval of the Sale from the Lender. Each lender has its own requirements to qualify. Most lenders will not allow the Seller to pay for repairs or credit money to a buyer for repairs, and as such, your best and perhaps only opportunity to purchase a Short Sale Property will be on an "AS-IS with Right to Inspect" Basis (which allows you to inspect the property and cancel the contract if repairs are beyond what you would like to pay). Also lenders will typically not allow closing costs and other credits to be given to a buyer on a Short Sale. While you may consider purchasing a property that is subject to Short Sale approval, there may be other properties available through a traditional transaction which you may find better satisfies your goals.
How Long Will It Take To Get A Short Sale Approved?
Every Short Sale situation is different and depends upon many different factors such as the Sellers individual circumstances, the nature of the loans and other liens against the Property, and the Sellers lenders criteria and staffing. Many Lenders will not even begin to review a Sellers request until a contract for sale has been executed, which may further delay the process. In addition, lenders will require the Seller to provide detailed financial information and may also perform appraisals of the property to determine whether it is in fact worth less than the outstanding mortgage amount. While some lenders are able to review Short Sale requests quicker than others, many lenders take at least 5-9 weeks, if not longer.
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