Tuesday, December 7, 2010

Short Sale Information-Since it seems to be the norm these days!

What is a Short Sale?
A short sale, negotiated settlement, or short pay occurs when a lender agrees to accept less than the amount owed to pay off a home loan as an alternative to foreclosure. The lender usually agrees to a short sale because they know if they take the property back through foreclosure they are going to take a much larger loss.

But My House Is Going to Foreclosure, Will I have Enough Time?
Starting a short sale will not automatically stop the lender from starting the foreclosure process. However, successfully convincing lenders to postpone a foreclosure, while negotiating a short sale is crucial. There are no guarantees the lender will accept the short sale.

How Long Will it Take?
The short sale negotiation process is a lengthy one. It may take several weeks to months before a lender and home owner can agree on acceptable terms. Make sure your Realtor keeps you informed of the progress throughout the entire transaction.

Can I Stay in the House?
The purpose of a short sale is to get the property sold. So, you will be moving. This is not a program that can stop a foreclosure and allow you to keep the house indefinitely. It is a lengthy process and you can stay in the home until the sale is complete.

What type of paperwork do I need?
The lender will require a view of the financial package that usually includes:
* (2) Months’ bank statements
* (2) Months’ pay stubs
* (2) Years’ IRS tax returns

How does the Real Estate Agent get paid?
Your Agent will negotiate directly with the bank for all real estate agent commissions. In most cases, the bank will offer the listing agent a smaller than average fee for performing the marketing and negotiation responsibilities associated with representing a seller.

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