Imagine this familiar situation: potential home buyers discover a gorgeous home for sale. They contact their real estate to get more information. The moment they finish the tour they are bubbling with excitement and are ready to make an offer.
That’s when the realtor gives them the news: This property is up for short sale.
They are excited because it’s an opportunity to get the home they want for less, but they are clueless about the short sale approval process and how long it will take. They want to quickly proceed. But then months pass, and they hear nothing…
They’re lease on their current rental is about to expire and they are faced with a difficult choice – if they don’t sign a new lease they will have to move in the next 30 days, yet until they close on the new home, they have nowhere to go.
The biggest complaint potential buyers have is the short sale approval process. There’s no doubt that it can be a lengthy. It can get even longer if procedures aren’t followed and if there’s missing paperwork.
So what can you do to increase your chances of getting a short sale approval?
- Find a real estate agent who is extremely familiar with the short sale process and the HAFA provisions, who fully understands short sale qualifications and requirements. Even small mistakes or oversights can extend the process by months or even get an offer rejected altogether.
- Get a mortgage pre-approval for the sale as soon as possible.
- Make a fair offer that is comparable to the market value in the area. Low ball figures will most likely get rejected by the current homeowner’s lender.
- There is a package that must be submitted to the lender. Not one document can be omitted. Work with your agent to make sure all of the necessary paperwork is completed to increase your changes of getting a short sale approval.
Disclaimer: This information is provided for information purposes only. You should always seek independent counsel such as certified public accountant and or real estate attorney pertaining to sale of your home, land and or real property in the matters of state and federal taxes and legal issues.
Tags: short sale approval