SHORT SALE: Its process in US Real Estate

buy-and-sell

 

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.

  1. Home Owner who is experiencing a hardship or bankruptcy on her or his financial status.
  2. Home Owner that owes the Lender more than the amount of his home or property.
  3. Home Owner that has past due on his or her account.
  4. Home Owner that can no longer pay for the property.
  5. Lastly, the property will be for sale at a very low price.

There are 10 steps in Short Sale

  1. 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.

  1. Gathering Information / Data

Realtors will collate information and gather data that includes property details and financial details to make a Short Sale deal.

  1. Set up File

Set up agent will double check on the Short Sale application and may take up to 30 to 60 days.

  1. Assigning a Loss Mitigation

He or She focuses on the Short Sale process. He or She can  focused on the hardship and other documentation.

  1. Order Appraisal

Lender will be responsible for the appraisal of the buyer’s home. The result would be highly suggestion.

  1. List in the Market

After appraisal, It will be listed as well in contact 500. It is perfect and ready to be choose from.

  1. Receives Offers

Lender will received multiple offers about the property and those who will be chosen will submit to the lender.

  1. Submit Package to Lender

Submission of documents, maybe compile as she is way.

  1. Approve / Decline the Offer

Lender will scan through all over the pages of the offer. Lender will decide whether it is fake or good

  1. Close File

If property got sold then you have to update your file as close file  to avoid confusion in the future.

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