What is Required for A Short Sale? Datline Stockton, Lodi Ca June 23,2010
What is a Short Sale?
A short sale is specifically designed to help borrowers who are unable to afford their first mortgage and want to sell their home and avoid foreclosure, even if the homes sale price does not pay off their mortgage. A short sale requires the following participants working together as a team.:
- The Homeowner (seller)
- Home Buyer
- Certified Short sale specialist (Realtor)
- Sometimes the Mortgage Insurance Company (MIP)
Another type of short sale is the strategic default. This occurs when the homeowner determines that the market value of his home is unlikely to recover in the near future and they owe more on their mortgage than they can sell their property for. A short sale can often be the solution to a bad situation.
How Does a Short sale Work?
- Pre-sale- You list your property (like any home sale) with a local Stockton or Lodi real estate certified short sale specialist (real Estate Agent)
- Establish a market value (sale price
- Have your realtor do a Comparative Market Analysis or home evaluation
- Ask you realtor for a Marketing plan. Time is of the essence so a high impact plan is essential
The Offer
All offers are not the same and your real estate agent needs to do a thorough examination of the offer and shape it to meet your lenders requirements.
- The offer must be in writing and signed by all parties to the transaction
- Offers from home buyers must be accompanied by an acceptable pre-approval letter from a qualified lender
- Your real estate agent should call the lender and inquire about the buyer's credit score and availability of funds to close escrow (COE)
- If the offer is from a cash buyers it must be accompanied by proof of funds
- The offer is submitted to you mortgage holder and they review all documents a issue a short sale approval
short sales can be very helpful for homeowners struggling to pay the mortgage and a great opportunity for home buyers. The Lilly Real Estate Group at PMZ Real Estate are certified Short Sale Specialists and HAFFA and HAMP certified. There are no upfront fees ( you lender pays). We are here to help and provide you information about short sales, the local real estate market and trends in Stockton and Lodi Call Hugh Lilly Realtor© for a consultation at 209-479-9222.