What is a short sale?
Let's break it down. Say you're selling your home; however, the offer you get is so low, it won't cover the total amount you owe on your mortgage. But you need to unload it, so you'll take it. This is a short sale—simply put, you end up “short” on paying back your lender, and the bank agrees to accept less than what's owed on the loan.
This is a situation that many of our homeowners are dealing with at this time. We can assist and expain how the process works. If you are what is caled UPSIDE DOWN on the mortgage it does not mean you can not sell your home. Bottom line? If you're wondering what is a short sale going to do for my chances of getting out from under this mortgage, they can be a viable solution for some. Done right, sellers, buyers, and the bank can all walk away happy.
To assess whether to approve your short sale, banks will require you to submit some paperwork, including your offer letter as well as a “hardship letter” explaining why you can no longer make your mortgage payments, along with financial documents such as income statements or medical bills to back that up. At that point, they will most likely have your home appraised to determine if the offer you've received is fair. If it is, they may allow the deal to go through, although they may have some stipulations , which can be negotiated.
Short sale buying:
I wouldn't recommend them for first-time buyers, who may get frustrated with the extra paperwork and long waits,” says Waterhouse. “A traditional sale takes 30 to 45 days to close after the offer is accepted. A short sale typically takes 90 to 120 days, or even longer.” Short sales are not always a bargain deal. Most banks require a house to be sold for fair market value. Many times you do better to purchase a home that is on the market and not a short sale. Short sales may also tie up your finds because you have to go into a contract and not know for many weeks if the offer will be accepted or not. The bank has to send out an appraiser to look and do many calulations before they decide to accept your offer. When they do not accpet the offer they will come back with another offer that they feel is fair. At this point you cant take it or walk away. It is a very long process.
Contact us for help and expalination
* it is always confideantial