Buying, Selling or Renting a Short Sale can be a complicated matter.
Hire an experienced trained professional to help you through the process.
Gidget Jackson offers personal representation in the Short Sale process for your unique situation.
Short Sales for the purpose of MLS listings below are defined as properties for sale where the seller is unable or unwilling to pay the difference owed on their mortgage or other liens on the property in order to sell. The seller requests a short payoff from their lenders and must provide financial documentation proving they have a hardship that will compel the lender and/or other lien holder(s) (ex/ condo association) to agree to a short payoff and allow the release of lien(s) in order to sell the property.
Short Sales require an additional disclosure to buyers regarding the terms and conditions of the short sale, time frames for the lender to make a decision and other contingencies. The owner of the property is the borrower not the lender like a bank owned property known as an REO. Short sales typically take longer to close due to the review by the seller's lender to approve the short sale. The lender and the seller must agree on the terms and conditions of the sort sale before the seller can proceed to close. There are also many variables to consider when purchasing a short sale like: how far a seller is in the process, that all parties are cooperating, how many liens exist that require approval, who the investors are on the loan, if mortgage insurance is involved, utility issues like sewer install, hookup and payments, utility liens, municipal liens, condition of the property, warranties to name a few. Unlike a traditional sale, short sales require more time and additional due diligence during the purchase process. Offers accepted by the seller and buyer may be countered by the seller's lender so prices are not always guaranteed unless the seller can provide a pre-approval from their lender (s). At this time, pre-approvals by the lenders are rare but the good news is lenders are preparing cooperative short sales that would allow them to sell at a pre-approved price like an REO allowing sellers to avoid foreclosure. Buyers be aware that a pre-approval for one buyer is not always honored for another so make sure you know the terms and conditions of any pre-approval prior to making an offer.
For many reasons it's important to use experienced short sale agents when buying or selling distressed properties as these types of sales require advanced skills and knowledge of the procedures and requirements to obtain short sale approval and get a property to closing.