Tips on short sales
Selling or buying a short sale property is not an easy proposition as the process is complicated and carries several problems. In general, the lender will prefer a short sale to a foreclosure if the financial loss is less compared to the huge expenses that you will have to incur to foreclose on a property.
If you are a seller, the following guidelines will help you in this type of sale.
Information:
Before deciding to make such a sale, you should gather all the information about it, know the laws, Fannie Mae guidelines, etc., and be aware of the consequences for your future, on your credit report, etc.
preparation:
Mentally prepare to wait that long, as a short sale needs the lender’s approval and this can be time consuming. Your home must also be “ready” as throughout the entire period of this form of property sales, it must be neat, clean, and ready for potential buyers to take a look at.
Letters and documents:
You must convey your intention to short sale to your lender (s). The letter you write requesting the lender’s approval is vital. Also, you can only opt for a short sale when you are in a low financial position due to a hardship. You need to prove your difficulties through a hardship letter and also prove your financial crisis. Keep documents in place that may be required by the lender (s) for this purpose. Also, give a lot of importance to the hardship letter. Get help writing it, if necessary.
Consult the right people:
To be successful in a short sale, you should refer to:
- 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.
Tips for a buyer buying a property in this type of sale are outlined below.
Agent
You must choose the right real estate agent for your needs. Find someone who specializes in handling this form of sale to get all the help and guidance you need in this matter. Your agent should provide you with a comparative study of the properties for sale in the area where the short sale property is located, a faithful representation of the shortcomings in the short sale, should provide you with details about the number of lenders the property seller has, etc. .
Inspection
One of the conditions for buying a property through this sale process is to buy it in the state it is in without repairs having been made. This results in the need to see correctly and check everything that is desired. Several aspects of the house that should be inspected are:
– Fireplace
– sewers
– Pests
– The ceiling
– Septic and water tanks
– Fireplace
– Bedrooms
– Garden, etc.
Offer
The offer you make on the property should be what the agent and seller are looking for! Don’t rush with it. Think, Observe, Search, Inspect, Get Help, Know, and then Place Your Offer to Buy so that it is accepted!
Lender
Since a short sale depends solely on the approval of the lender, you, as the buyer, should take time to go through the entire process. Also, once the seller accepts your offer, you must mention a time period when submitting your offer to the lender. Please indicate that your offer will be canceled if the offer does not expire within the mentioned period. You can safely do this if you have done all the groundwork and have good reason to believe that your offer is the best anyone can offer on the property.