More than 2 million homes have been sold as short-sales since 2008. There has certainly been some negative press surrounding short-sales, however, when executed properly, a short-sale can represent an awesome deal for home buyers and a great option for sellers to avoid foreclosure. In order to protect yourself, your investment, and generate your desired outcome, ask for your real estate agent’s credentials to be sure they know the ins and outs of this type of home sale.
A short-sale is a home that is being sold for less than what the owner owes on the current mortgage. Unlike a foreclosure where the bank holds the title, the title of the short-sale home still belongs to the seller. The seller’s lender must approve the sale amount, which typically takes at least two months if there is just one lender, and four or more months if there are multiple lenders.
In order to move through the short-sale process quickly, buyer and seller financing must be in order. Documents such as tax returns, pay stubs, bank statements, and proof of income are required. Flexibility on closing terms will also help close the deal sooner rather than later. Buyers are recommended to remove contingencies, and sellers must be in the mindset to do what it takes to sell and move on.
Making a strong offer is a must. Keeping in mind that a lender is going to take a couple of months to accept or approve an offer, and they want to take the smallest loss possible, a buyer must go in with a good offer if they want the property. Remember to avoid contingencies. Despite wanting to avoid foreclosure, if a seller is asked to pay the remaining mortgage balance at the closing table, a financially-stretched seller will likely turn the offer down. In addition, if a seller has multiple lenders, they could be sued for the difference owed after closing. Counter-offers and rejections only prolong the process for both the buyer and seller.
Listen up, home sellers! The time to short-sale is now! According to a recent article in the Sun Sentinel, the Florida Housing Financial Corp. is about to reach its limit in the $350 million state program designed to help underwater borrowers.
Experience counts. Your savvy short-sale realtor is well-versed in which documents the bank is looking for, and will guide you through making and accepting an offer. He has a team of professionals, including a trusted real estate attorney and title officer, to navigate the short-sale process and take these deals to fruition. Ask for your agent’s credentials to make sure he is certified in short-sales and can guide and protect you while buying or selling a short-sale property.
Here at ACE Home Team, David Santangelo has helped hundreds of buyers and sellers purchase and sell short-sale properties. He has been certified through the Institute of Luxury Home Marketing, and his team of short-sale savvy professionals is provided at no additional cost to the buyer or seller. If you or someone you know is interested in buying or selling a short-sale property, or just interested in understanding more about the process and your options, please call us at 954-895-2026. You can also email us at firstname.lastname@example.org and visit our website: www.aceluxuryhomes.com.