WHAT IS A SHORT SALE?
A short sale is where a homeowner is able to sell his or her house even though the homeowner owes more than the home is worth. The short sale must include permission from the bank to accept less than what is owed on the property.
HOW DOES A SHORT SALE BENEFIT THE HOMEOWNER?
A short sale benefits the homeowner because the homeowner gets out from underneath the burden of the mortgage through an orderly sale of the property. Another benefit is that the homeowner pays nothing for the transaction. An additional benefit is under FHA rules, someone with a short sale on their record is eligible to buy a home within 3 years versus a foreclosure requires 5 years. A further benefit is that many times the act of filing for a short sale will cause the bank to more likely negotiate a loan modification.
WHAT IS THE COST OF A SHORT SALE?
The homeowner pays nothing for a short sale. The bank absorbs the entire cost of the transaction.
WHAT DOES THE HOMEOWNER NEED TO DO TO BE SUCCESSFUL?
To be successful, the homeowner needs to:
· Fill out paperwork that supports the reasons behind not being able to afford the mortgage
· Cooperate with showing the home to prospective buyers
· Maintain the condition of the home to make it attractive to buyers
· Have patience
WHAT ARE THE STEPS TO A SHORT SALE?
- Place the home on the market with Anne and Joe.
- Fill out the paperwork required by the bank.
- Receive an offer from a potential buyer.
- Submit the offer and financial paperwork to the bank for approval.
- Wait patiently…..the time for waiting depends upon the bank involved …. Wachovia can have approval in 7 days whereas other banks may take up to 3 months.
- Once the approval comes from the bank, a normal escrow period of 30 to 45 days is typical before the home closes escrow and the buyer moves in.
For more info, see http://news.yahoo.com/s/nm/20091130/bs_nm/us_treasury_shortsales
Joe Herbert and Anne Daily
ReMax Gold
916-354-8870