Anyone suffering from mortgage debt or a possible foreclosure knows just how stressful finding a solution can be. Not wildly popular in the past, short sales are now becoming more commonplace in a struggling market. However, the process is riddled with hurdles for the homeowner. Knowing these few secrets can help ensure a successful short sale.
What The Lender Wants
The obvious goal for the homeowner in a short sale is to avoid foreclosure and get out from under a mortgage debt. On the other hand, the lender is still motivated by one thing: recouping the most of their lost loan. Motivated by money the lender is out to accept only the best deal possible. Since the homeowner is the one doing all of the work in a short sale, knowing what kind of offer the lender is looking for can help process move more smoothly. While the lender will not come right out and say what they want, homeowners should be trying to secure the best deal possible with potential buyers.
What The Market Is Saying
Short sales are attractive to buyers for the simple fact that they can be an extremely good value. Typically put on the market for less than fair market value, the strategy is to boost interest and obtain multiple offers on the property. Homeowners listing their home for a short sale need to consider the point at which offering a deal becomes offer a steal. In other words, listing the property too far below fair market value can impede securing a good offer and could result in rejection by the lender.
What To Expect In The Process
The most notable virtue of participating in the short sale process is patience. Homeowners should anticipate three to six months worth of effort in securing offers and getting approval from the lender. It isn’t uncommon for a lender to take over 60 days to reply to an offer presented by the homeowner, this means that they risk having potential buyers walk away or even avoid an offer altogether. Homeowners need to be able to put in the time and effort of repeated showings of the property, playing hardball negotiations with a buyer to secure a deal and patience when waiting for the lender to respond.