More about Short Sales !
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hiShort sales are a financial tactic that appears only in real estate downturns. Such sales are supposed to be a win-win that gets the seller out of a tight spot, a buyer a good deal and the bank off the hook.
But what sounds like a logical alternative to the usual outcome of defaults – foreclosure – can be a minefield. Critics charge banks with being shortsighted and a menace to neighborhood home values. Banks say they have obligations to their investors. Some say inexperienced real estate agents forward irrational offers and incomplete paperwork, then expect fast miracles from their inundated staff members.
The result inside this real estate downturn has often been frustration for sellers, buyers and banks. Banks have been resistant, operating in a new financial landscape that requires permission from global investors and other parties. Many real estate agents simply avoid short sales, steering buyers to bank repos. And sellers have become frustrated by complications and 60- to 90-day timetables.
The lender insists that the customer pay thousands of dollars in late fees for accepting a short sale.
Agents who try short sales often accuse banks of being shortsighted, even harming the market.
Banks say they prefer loan modifications over short sales. Freezing or lowering interest rates helps people who want to stay with the house. Short sales aim at owners who just want out. And, there are problems with incomplete short sale applications. “The banks are inundated so If you give them an incomplete application, it’s going to the bottom of the pile.”
What’s the No. 1 secret to getting a short sale done successfully?
Contact your servicer and let them know you intend to sell. If you let the bank know early they may get things ready, go through the financials and get ahead of the offer. Too often, people submit the entire packet with their first offer and many times incomplete.
Your licensed real estate agent can help you through the steps.