Short Sale is selling a property less than the amount owed to a lender. If things went wrong and the home owner cannot afford to pay his or her mortgage in a specific timeline, then the property will become a Real Estate Owned.
Short Sale is somehow a win – win situation for all the party involved even if they are not capable in paying the mortgage monthly.
There are four types of Home Owner that can be eligible for a Short Sale.
- Home Owner who is experiencing a hardship or bankruptcy on her or his financial status.
- Home Owner that owes the Lender more than the amount of his home or property.
- Home Owner that has past due on his or her account.
- Home Owner that can no longer pay for the property.
- Lastly, the property will be for sale at a very low price.
There are 10 steps in Short Sale
- Pre – Qualification
The home owner must be qualified or experiencing any of the five types of Home owner listed above, experiencing hardship , can no longer pay for the mortgage, has past due on his or her account.
- Gathering Information / Data
Realtors will collate information and gather data that includes property details and financial details to make a Short Sale deal.
- Set up File
Set up agent will double check on the Short Sale application and may take up to 30 to 60 days.
- Assigning a Loss Mitigation
He or She focuses on the Short Sale process. He or She can focused on the hardship and other documentation.
- Order Appraisal
Lender will be responsible for the appraisal of the buyer’s home. The result would be highly suggestion.
- List in the Market
After appraisal, It will be listed as well in contact 500. It is perfect and ready to be choose from.
- Receives Offers
Lender will received multiple offers about the property and those who will be chosen will submit to the lender.
- Submit Package to Lender
Submission of documents, maybe compile as she is way.
- Approve / Decline the Offer
Lender will scan through all over the pages of the offer. Lender will decide whether it is fake or good
- Close File
If property got sold then you have to update your file as close file to avoid confusion in the future.