Short Sales – Tips to Sell in Under a Month

Short Sales – Tips to Sell in Under a Month

Before embarking on the short sale process, real estate investors should do their due diligence. This includes visiting a short sale property, obtaining a home inspection, and conducting a title search. This information will help investors determine what the home is worth and what repairs or renovations might be needed. In addition, they should also check the amount owed on the property compared to its market value. Finally, they should determine if there are any liens on the property.

The buying process for short sales can be long and complex, so buyers should be patient and have steel nerves. They should also have the strength to walk away from a short sale if needed. Remember that most short sales aren't completed immediately. They will need to be negotiated on a weekly basis.

The process requires the seller to provide an accurate financial picture and all of the required documents. Missing any of these documents can delay the process. Additionally, the lender may ask for a Broker Price Opinion. Different lenders require different documentation. It is important to keep copies of all documents. The lender's requirements for short sales vary from state to state. Some lenders are very proactive and responsive while others are non-committal. The bottom line is that every lender is different and will have different requirements for negotiating the deal.

The first step in the short sale process involves sending the lender a package that includes the hardship papers, bank statements, income statements, and copies of bills, property taxes, and asset disclosures. Once the lenders review all of this information, they will decide whether to approve or reject the short sale. If the lender approves, they will issue an approval letter. The seller's agent will help negotiate with the lender on the terms of the sale.

When negotiating a short sale, it is important to be patient and understand the timeframe involved in the process. The average short sale takes about three to six months to complete. Therefore, it is vital to understand this timeframe before contacting the seller. However, the process can be delayed by a low offer, incomplete paperwork, or last-minute negotiations with the lender.

While short sales are not a perfect solution for every situation, they do offer a great deal on an investment property. However, they do require a lot of patience and luck. Both buyers and sellers must be prepared for any outcome. The lender has the final say, so it is imperative to do your research. It's essential to understand the process so that you can maximize your chances of a successful sale.

Although short sales can be a more complex process than traditional sales, they are advantageous for all parties involved. By minimizing the financial burden of foreclosure, these sales can help the homeowner avoid the negative impact on their credit score. In addition, short sale properties are priced at market value, so the lender will likely sell them for a much better price.