C Documentsand Settings La Shea Miller My Documents Shortsalespresentation 090221135826 Phpapp01
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C Documentsand Settings La Shea Miller My Documents Shortsalespresentation 090221135826 Phpapp01 C Documentsand Settings La Shea Miller My Documents Shortsalespresentation 090221135826 Phpapp01 Presentation Transcript

  • 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 due on the mortgage.
  • 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- foreclosure stage.
  • 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 is experiencing economic problems. – The property market value has declined.
  • 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 short sale which is subject to the lender’s approval.
  • 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 releases the lien • The seller delivers the deed.
  • 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.
  • 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.
  • 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.
  • Why a short sale may not be beneficial – Lender can modify the terms of the sale at anytime – Higher than normal closing cost
  • 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 ?????????????????????????????????? ?