In reality, short sale transactions are not easy to close. Some lenders will approve the short sale in as little time as 5-6 weeks, others may take anywhere from 5-9 months to get approved. Buying a short sale is a good option, if you are in no hurry to sell your present home or you do not have a time frame to move into another home. Just because the property is listed as a short sale, it doesn't mean that it's for sale nor it will sell at the advertised price. Here are some tips to get your short sale offer accepted:
1. Find out the short sale listing agent's track record. He needs to have a wide experience in closing a short sale. That's because it's up to the listing agent to submit the short sale package to the lender and negotiate. Your buyer's agent can't talk to the bank directly. The listing agent should have the short sale package which consists of:
- Seller's hardship letter
- Tax returns
- W-2s
- Payroll stubs
- Financial Statement
- Bank Statements
Your short sale purchase will not be accepted if you don't have the completed required documents.
2. Hire an experienced Realtor with thorough knowledge and experience when it comes to short sale homes to guide you in every step of the buying process. Your offer will have a better chance of getting accepted if he/she knows what he/she is doing.
3. Short sale offer should be priced near the market value. When the listing agent submits your offer to the lender, the agent should also include a comparative market analysis that justifies the price in the short sale offer. Submitting a low offer is not recommended because a bank could reject it immediately. If the lender believes that they can take more money through foreclosure proceedings, then they will proceed with the foreclosure. Be prepared to argue with a rejection and show comparable sales that support the short sale offer price.
4. Make a Short Sale Offer with a Strong Earnest Money Deposit. Many first-time buyers puts down an earnest money deposit of $1,000, but an amount between 1-3% of the sale price gives the impression that the buyer is serious.
1. Find out the short sale listing agent's track record. He needs to have a wide experience in closing a short sale. That's because it's up to the listing agent to submit the short sale package to the lender and negotiate. Your buyer's agent can't talk to the bank directly. The listing agent should have the short sale package which consists of:
- Seller's hardship letter
- Tax returns
- W-2s
- Payroll stubs
- Financial Statement
- Bank Statements
Your short sale purchase will not be accepted if you don't have the completed required documents.
2. Hire an experienced Realtor with thorough knowledge and experience when it comes to short sale homes to guide you in every step of the buying process. Your offer will have a better chance of getting accepted if he/she knows what he/she is doing.
3. Short sale offer should be priced near the market value. When the listing agent submits your offer to the lender, the agent should also include a comparative market analysis that justifies the price in the short sale offer. Submitting a low offer is not recommended because a bank could reject it immediately. If the lender believes that they can take more money through foreclosure proceedings, then they will proceed with the foreclosure. Be prepared to argue with a rejection and show comparable sales that support the short sale offer price.
4. Make a Short Sale Offer with a Strong Earnest Money Deposit. Many first-time buyers puts down an earnest money deposit of $1,000, but an amount between 1-3% of the sale price gives the impression that the buyer is serious.
Buying a short sale home means that you, as the buyer, will be shouldering for any repairs of the property. Short sale homes are sold in "as is" condition. Once you have submitted the required documents, then all you have to do is to wait for the lender's approval.
No comments:
Post a Comment