what every buyer needs to know about a short sale
DESCRIPTION
A brief overview of the what every buyer should know about the short sale process.TRANSCRIPT
![Page 1: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/1.jpg)
SHORT SALES
What Every Buyer Needs to Know About Short Sales
![Page 2: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/2.jpg)
What is a short sale?
• A short sale means a lender
is willing to accept less than the total amount
due on the mortgage.
![Page 3: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/3.jpg)
FACT
• A lender will approve a short sale to avoid the high costs of a foreclosure.
![Page 4: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/4.jpg)
FACT
• Some lenders will allow a buyer to purchase a home for less than the mortgage balance while in the pre-foreclosure stage.
![Page 5: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/5.jpg)
FACT
• THERE ARE 3 STAGES OF FORECLOSURE:
– PRE-FORECLOSURE– FORECLOSURE– POST-FORECLOSURE
![Page 6: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/6.jpg)
Qualifications for a Short Sale
– The mortgage is in the process of default
– The seller has no assets
– The seller is experiencing economic problems.
– The property market value has declined.
![Page 7: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/7.jpg)
Types of Hardship
– Unemployment– Divorce– Medical Emergency– Sudden Illness– Bankruptcy– Death
![Page 8: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/8.jpg)
Steps to Taken for Short Sale
• Seller signs a listing agreement with a real estate agent to sell the property as a short sale which is subject to the lender’s approval.
![Page 9: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/9.jpg)
Steps to Taken Short Sale
• Listing agent finds a buyer who makes an offer for less than the amount of the mortgage.
![Page 10: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/10.jpg)
• Seller accepts the buyer’s purchase offer.
• The lender accepts the buyer’s offer.
![Page 11: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/11.jpg)
• Once all the contingencies are met and due diligence is performed.
• The buyer delivers the funds
• The lender releases the lien
• The seller delivers the deed.
![Page 12: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/12.jpg)
What should a buyer accomplish?
• Obtain a real estate attorney
• Make the offer contingent upon a property inspection and the lender’s acceptance of the offer.
![Page 13: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/13.jpg)
What should a buyer accomplish?
• The buyer should allow the lender a specific amount of time to accept the offer.
• If the lender does not accept the offer within that amount of time the buyer should be able to withdraw the offer.
![Page 14: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/14.jpg)
Why a short sale may not be beneficial
– The seller paid too much originally for the property.
– Home sells in “as-is” condition.
– Transaction takes to long to close.
![Page 15: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/15.jpg)
Why a short sale may not be beneficial
– Lender can modify the terms of the sale at
anytime
– Higher than normal closing cost
![Page 16: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/16.jpg)
Things to Remember
• It may take between 30 to 90 days to close.
![Page 17: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/17.jpg)
Things to Remember
• The seller can accept the
offer but the lender must
approve the short sale.
![Page 18: What Every Buyer Needs to Know About a Short Sale](https://reader036.vdocuments.net/reader036/viewer/2022062513/554e1935b4c90511778b48fd/html5/thumbnails/18.jpg)
QUESTIONS
???????????????????????????????????