Short sale is a procedure that rescues a homeowner who can no longer afford to pay for their mortgage payments. Although it is an alternative to foreclosure, short sales are also loaded with disadvantages that can ruin an investor's business and jeopardize a homeowner's plan. However, there are things that you can do to avoid these pitfalls like being familiar with the things that can go wrong in a short sale procedure.
Time is the first adversary of both investors and homeowners. Because short sales can take time like two to six months, there might be delays especially when it comes to approval. In this case, be prepared to be rejected by lenders. They can still reject short sale offers from homeowners although lenders don't want to end up with the very costly foreclosure process. One major reason that lenders decline offers is the low offer. Thus, as a homeowner you have to make a counter offer or increase your offer price.
Approval of short sales don't happen overnight. It takes time before it can be approved. For one, lenders need to know the seller's financial difficulty that forced them to stop making payments. In this case, sellers' or homeowners' need to pass a statement of hardship or a hardship letters, along with their proof of income, bank statements, etc., that explains their financial difficulty. Since it takes time before a short sale can be approved, it is important that sellers are informed with the time lines and necessary procedures involved in a short sale.
Time lines are significant in a short sale proceeding. Hence, upon authorization from the lender banks will give a specific period within which sellers or homeowners should be ready with their financing and thus close the deal.
Realtors understand that buyers may back out especially if they notice problems or repairs to the Lakewood homes for sale. Thus, it is important that realtors allow buyers to scrutinize the property so they know where their money is going.
Time is the first adversary of both investors and homeowners. Because short sales can take time like two to six months, there might be delays especially when it comes to approval. In this case, be prepared to be rejected by lenders. They can still reject short sale offers from homeowners although lenders don't want to end up with the very costly foreclosure process. One major reason that lenders decline offers is the low offer. Thus, as a homeowner you have to make a counter offer or increase your offer price.
Approval of short sales don't happen overnight. It takes time before it can be approved. For one, lenders need to know the seller's financial difficulty that forced them to stop making payments. In this case, sellers' or homeowners' need to pass a statement of hardship or a hardship letters, along with their proof of income, bank statements, etc., that explains their financial difficulty. Since it takes time before a short sale can be approved, it is important that sellers are informed with the time lines and necessary procedures involved in a short sale.
Time lines are significant in a short sale proceeding. Hence, upon authorization from the lender banks will give a specific period within which sellers or homeowners should be ready with their financing and thus close the deal.
Realtors understand that buyers may back out especially if they notice problems or repairs to the Lakewood homes for sale. Thus, it is important that realtors allow buyers to scrutinize the property so they know where their money is going.
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Ensure your transaction with these simple steps before short selling Salt Lake Real Estate. Be aware of the things that can go wrong before you short sale Ogden UT Real Estate to ensure a calm and undisturbed transaction.
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