Lake Havasu Short Sales
Lake Havasu Short Sale Quick OverView
A short sale happens when a homeowner owes more than market value for his/her home and has a hardship that is impacting his/her ability to pay the mortgage. A short sale is a step before foreclosure. The bank must agree to the transaction and if they do they pay all closing costs to settle the debt.
- Homes are priced similar to Foreclosures but in most cases they are occupied and better kept than foreclosures
Seller Requirements to Short Sale:
- Owe more than the property is worth
- Must be able to prove a hardship
- Most provide financial statements as required by lender
- Typically the mortgage is past due and foreclosure is a possibility
Note: It is important to conuslt with an attorney who specializes in short sales or a tax accountant to understand the tax and legal issues.
The Short Sale Process
- Offers must first get presented to the buyer and with the buyer approval they can be submitted to the bank.
- If the bank is receptive to short sale they will order a BPO (broker price opinion) and assign a negotiator.
- Usually the negotiator says either yes or no to the offer but they can counter back with a higher price
- If the offer is accepted a letter is generated with the bank terms
Timeframe for Short Sales:
- Usually 30 days to 6 months to settlement
- Most often, a short sale involves more than one loan. If the 1st and 2nd loans are with the same lender, the process is easier.
If you are thinking of a short sale consider all your options. Some of these are negotiating a loan modification, refininacing your loan. If you have no alternative but a pending foreclosure action a short sale might be an alternative for you.
Lake Havasu Short Sales are selling fast and your interview is confidential. Give us a call or simply complete the form list my short sale and we will get back to you right away.
