Short Sale ProcessLearn The Truth About Buying Short Sale Property Short Sale Process and a Mortgage Short Sale Takes Some Time Because Real Estate Investors Do Not Like to Lose Their Money. The short sale process in most cases is a long and frustrating real estate experience at best.
The Truth Is Short Sales Are Usually Good Deals, But The Process Sucks and It Takes Forever. To start with the real name of the short sale is " Short Payoff" like many real estate titles it has been changed because of use. To many buyers and Realtors short sales are a mystery, even though hundreds of short sales take place every day across the nation...
There are a number of reasons for the snail pace to process short sales. • #1 Mortgage service centers have hired low paid incompetent workers. • #2 Very few of the incompetent loan service center employs have any real estate knowledge. • #3 There is no motivation for the loan service employs to speed things-up.. • #4 Most of the negotiators are trying to manage 3 or 4 hundred properties each.
The next major hurtle that short sale "Loss Mitigation" departments must face is many of the loans were sold as securities to investors all over the world. Each investor that is offered a short payoff requires someone to sign for the loss. For additional information go to Short Sale Help. When you add all the above drama together it is plain to see why real estate short sales move so slowly.
Sometimes it is necessary to submit the paper work for the short sale process 4 or 5 times. Lenders and Banks grant short sales for 2 reasons: 1. There is more owed on the property than it is worth. 2. The seller has a financial hardship. Both the real estate value and the seller’s financial hardship must be supported by producing paperwork that proves what the seller claims, is true.
This may be done through a Buyers/Agent.
• Authorization Agreement (this allows a third party to discuss the loan). • Sellers financial statement. • Seller's hardship letter. • Tax returns for 2 years. • Recent pay stubs (30 days) • Last 2 months bank statements. • Listing agreement (if property is being sold.) • Purchase Agreement with short sale addendum. • HUD-1 more commonly known as a closing statement.
_____________________________________________ This is enough to start a real estate short sale. Depending on where you live and the type of real estate contracts used there could be between 25 and 50 pages to fax or e-mail to the lender. After the above information has been sent to the lender, be prepared to wait anywhere from 1 to 3 weeks before you hear anything. And then it may be from a talking telephone. Keep in mind; this just gets the process started. There will be many hours on the phone (most of which is on hold) faxes to send and re-sending information and providing up-dates because of the time involved. Do not give-up!!! Once the short sale is in the loop, lenders tend to let them go through. To learn more about the short sale process, check other pages on this real estate site. SHORT SALE PROCESS: If you are having foreclosure problems there is some good do-it-yourself legal information on this site. Click HERE for Jurisdictionary is the way to go if you have a pending lawsuit. Watch the FREE Instructional Videos. Left Side Half Way Down...
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