SHORT SALES
 What Every Buyer Needs
to Know About Short Sales
What is a short sale?

   • A short sale means a lender
is willing to accept less than the total
                 amount
 ...
FACT


• A lender will approve a short sale to avoid
  the high costs of a foreclosure.
FACT


• Some lenders will allow a buyer to
  purchase a home for less than the
  mortgage balance while in the pre-
  for...
FACT

• THERE ARE 3 STAGES OF
  FORECLOSURE:

 – PRE-FORECLOSURE
 – FORECLOSURE
 – POST-FORECLOSURE
Qualifications for a Short Sale

– The mortgage is in the process of default


– The seller has no assets


– The seller i...
Types of Hardship

– Unemployment
– Divorce
– Medical Emergency
– Sudden Illness
– Bankruptcy
– Death
Steps to Taken for Short Sale


• Seller signs a listing agreement with a real
  estate agent to sell the property as a sh...
Steps to Taken Short Sale


• Listing agent finds a buyer who makes an
  offer for less than the amount of the
  mortgage.
• Seller accepts the buyer’s purchase offer.



• The lender accepts the buyer’s offer.
• Once all the contingencies are met and
  due diligence is performed.

• The buyer delivers the funds

• The lender relea...
What should a buyer
          accomplish?

• Obtain a real estate attorney

• Make the offer contingent upon a property
  ...
What should a buyer
          accomplish?

• The buyer should allow the lender a
  specific amount of time to accept the o...
Why a short sale may not be
        beneficial

– The seller paid too much originally for the
  property.

– Home sells in...
Why a short sale may not be
        beneficial

– Lender can modify the terms of the sale at
  anytime

– Higher than norm...
Things to Remember



• It may take between 30 to 90 days to
  close.
Things to Remember


• The seller can accept the
  offer but the lender must
  approve the short sale.
QUESTIONS


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C Documentsand Settings La Shea Miller My Documents Shortsalespresentation 090221135826 Phpapp01

  1. 1. SHORT SALES What Every Buyer Needs to Know About Short Sales
  2. 2. What is a short sale? • A short sale means a lender is willing to accept less than the total amount due on the mortgage.
  3. 3. FACT • A lender will approve a short sale to avoid the high costs of a foreclosure.
  4. 4. FACT • Some lenders will allow a buyer to purchase a home for less than the mortgage balance while in the pre- foreclosure stage.
  5. 5. FACT • THERE ARE 3 STAGES OF FORECLOSURE: – PRE-FORECLOSURE – FORECLOSURE – POST-FORECLOSURE
  6. 6. Qualifications for a Short Sale – The mortgage is in the process of default – The seller has no assets – The seller is experiencing economic problems. – The property market value has declined.
  7. 7. Types of Hardship – Unemployment – Divorce – Medical Emergency – Sudden Illness – Bankruptcy – Death
  8. 8. Steps to Taken for Short Sale • Seller signs a listing agreement with a real estate agent to sell the property as a short sale which is subject to the lender’s approval.
  9. 9. Steps to Taken Short Sale • Listing agent finds a buyer who makes an offer for less than the amount of the mortgage.
  10. 10. • Seller accepts the buyer’s purchase offer. • The lender accepts the buyer’s offer.
  11. 11. • Once all the contingencies are met and due diligence is performed. • The buyer delivers the funds • The lender releases the lien • The seller delivers the deed.
  12. 12. What should a buyer accomplish? • Obtain a real estate attorney • Make the offer contingent upon a property inspection and the lender’s acceptance of the offer.
  13. 13. What should a buyer accomplish? • The buyer should allow the lender a specific amount of time to accept the offer. • If the lender does not accept the offer within that amount of time the buyer should be able to withdraw the offer.
  14. 14. Why a short sale may not be beneficial – The seller paid too much originally for the property. – Home sells in “as-is” condition. – Transaction takes to long to close.
  15. 15. Why a short sale may not be beneficial – Lender can modify the terms of the sale at anytime – Higher than normal closing cost
  16. 16. Things to Remember • It may take between 30 to 90 days to close.
  17. 17. Things to Remember • The seller can accept the offer but the lender must approve the short sale.
  18. 18. QUESTIONS ?????????????????????????????????? ?

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