Request short selling approval from the lender. Create your proposal and find a buyer. Demonstrate verifiable financial difficulties Hire the services of a qualified agent Gather the appropriate documents. The short selling process is a complex process that can take months to complete and can be confusing for home buyers and sellers.
For a short sale to be successful, the seller must meet certain criteria to obtain approval from the bank. Banks require information about the home seller's finances, specific short sale documents, information about the value of the home, and an offer from a prospective buyer. A real estate short sale is an offer of a property at a sale price lower than the amount owed on the current owner's mortgage. Prepare a complete and detailed set of financial documents and data to support the claim that a short sale is a good solution for the lender.
Once the short selling package has been sent to your lender (s), it will be assigned to a negotiator and the review and response period will last approximately 1 to 3 months. Once the lender is convinced that the landlord cannot meet their payments, they can approve a short sale. However, if you think you were a victim of abusive credit practices, you may be able to convince the lender to short sell, even if you haven't had a major financial catastrophe since buying the home. As the economy has improved and the housing market has recovered, short selling has become less common.
While it's always beneficial for buyers to get prior approval before making an offer, it's even more important in a short sale, since the lender will want to ensure that the new buyer is actually able to buy the property for a short sale. The following is a suggested workflow for agents interested in representing sellers who are or may be in a short selling situation. As mentioned, short sales tend to require more work than an average home sale, meaning they can also take longer to close. While the steps of a short sale are very similar to those of a traditional transaction, the process is more complicated due to the involvement of the lender.
It's entirely possible to make a short sale without hiring the services of a professional agent, but I digress. The first step in the short selling process is to hire an experienced short selling agent to represent you in the sale of your property and in negotiating with your mortgage lender. When a short sale is approved, homeowners should consider hiring an agent who specializes in short selling transactions, since they'll know how to manage the process smoothly and efficiently. If it weren't for anything else, there are too many moving parts and decisions to make to be able to accurately estimate how long a respective short sale will last.
Short selling tends to be lengthy transactions and requires a lot of paperwork, and can take up to a full year to process. A short sale could help you maintain your credit to a certain extent by helping you avoid foreclosure on your record.
