What are risks to buyer in a short sale?
Can you offer lower on a short sale?
What's the most difficult step when pricing a short sale?
Who benefits from a short sale?
Is a short sale bad for the buyer?
Let's talk buying vs. renting a home for a minute.— Thomas Frank (@TomFrankly) July 16, 2023
I see a lot of people fly into blind rage when @ramit suggests buying a home might not always be the best decision.
I even see personal finance creators getting mad about this.
For the record, I've purchased two homes. Sold…
What makes a short sale risky?
Frequently Asked Questions
How do I prepare for a short sale?
- Consider loan modification first. Contact your lender to see if it has programs to help you stay in your home.
- Hire a qualified team.
- Prepare a short-sale package to send to your lender(s) for approval.
- Gather documentation before offers come in.
Why would a lender agree to a short sale?
How much do you offer in a short sale?
- Who must approve the sale in a short sale situation?
- The lender must approve the short sale before it happens. The process can take as long as a year due to the paperwork involved.
- What does short sell a house mean?
- “A short sale is when a mortgage lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner. The lender forgives the remaining balance of the loan.”
- What is the difference between approved and unapproved short sale?
- Approved or Unapproved. An approved short sale means that the bank has agreed to allow a sale to occur at the lower price. Many times if a property is unapproved offers are contingent upon the approval of the bank. Offers placed on a short sale that have not been approved can be a big waste of time.
How to buy a house when you have a house in short sale
|Which is the possible outcome for a seller whose short sale is approved?||There is potential harm to the short sale home seller. In addition to not obtaining the highest price for the seller, which is or may be a violation of the law and or your fiduciary duty, the Lender may still require the seller (the original borrower) to pay off the remaining debt.|
|How long does it usually take a lender to review a short sale package?||Approximately 1 to 3 months Lender review: Once the short sale package has been submitted to your lender(s), it will be assigned to a negotiator and the review and response period lasts approximately 1 to 3 months. The lender will order and appraisal or broker price option (BPO) to determine the market value of the home being sold.|
|How does a bank approve a short sale?||The lender will want to review recent sales of comparable properties to make sure this is the case. The seller must be able to prove financial hardship. They have to show that they don't have the income or assets to pay back the rest of the outstanding mortgage loan.|
- How fast is a short sale process?
- How long does a short sale take? A short sale can take as little as a few weeks or as long as several months. Because short sales are complicated transactions, they tend to be more time-consuming. Plus, the original lender needs to review the short sale offer to determine whether they will accept it.
- Why do short sales get denied?
- Just because a seller accepts a short sale price doesn't mean that the lender will, and the list price may be far below what the lender wants. Banks may reject offers when the price is low, the seller or buyer doesn't qualify, the application is incomplete, or the loan has already been sold.