SHORT SALES What Every  Buyer Needs to Know About  Short Sales
What is a short sale? <ul><li>A short sale means  a lender </li></ul><ul><li>is willing to accept less than the total amou...
FACT <ul><li>A lender will approve a short sale to avoid the high costs of a  foreclosure. </li></ul>
FACT <ul><li>Some lenders will allow a buyer to purchase a home for less than the mortgage balance while in the pre-forecl...
FACT <ul><li>THERE ARE 3 STAGES OF FORECLOSURE: </li></ul><ul><ul><li>PRE-FORECLOSURE </li></ul></ul><ul><ul><li>FORECLOSU...
Qualifications for a Short Sale <ul><ul><li>The mortgage is in the process  of default  </li></ul></ul><ul><ul><li>The sel...
Types of Hardship <ul><ul><li>Unemployment </li></ul></ul><ul><ul><li>Divorce </li></ul></ul><ul><ul><li>Medical Emergency...
Steps to Taken for Short Sale <ul><li>Seller signs a listing agreement with a real estate agent to sell the property as a ...
Steps to Taken Short Sale <ul><li>Listing agent finds a buyer who makes an offer for less than the amount of the mortgage....
<ul><li>Seller accepts the buyer’s purchase offer. </li></ul><ul><li>The lender accepts  the buyer’s offer. </li></ul>
<ul><li>Once all the contingencies are met and due diligence is performed.  </li></ul><ul><li>The buyer delivers the funds...
What should a buyer accomplish?  <ul><li>Obtain a real estate attorney </li></ul><ul><li>Make the offer contingent upon a ...
What should a buyer accomplish?  <ul><li>The buyer should allow the lender a specific amount of time to accept the offer. ...
Why a short sale may not be beneficial <ul><ul><li>The seller paid too much originally for the property. </li></ul></ul><u...
Why a short sale may not be beneficial  <ul><ul><li>Lender can modify the terms of the sale at anytime </li></ul></ul><ul>...
Things to Remember <ul><li>It may take between 30 to 90 days to close.  </li></ul>
Things to Remember <ul><li>The seller can accept the  </li></ul><ul><li>offer but the lender must </li></ul><ul><li>approv...
QUESTIONS <ul><li>??????????????????????????????????? </li></ul>
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What Every Buyer Needs to Know About a Short Sale

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A brief overview of the what every buyer should know about the short sale process.

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What Every Buyer Needs to Know About a Short Sale

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

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