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When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose; moreover, not all sellers nor all properties qualify for short sales. Buying a Short SaleIt's a perfect time to buy a Short Sale - a great deal in the real estate market. Some sellers are forced to sell their homes without profit. During a "short sale", the home is being sold less than the cost the owners owe for the loan on their home. Here is how to go about negotiating the best price on a short sale home. How do I find a Short Sale property? The longer a property has been on the market, the more price reductions it may have and will have a greater chance at being short sold by the seller. Wording in the listing that all offers will have to meet seller' s bank approval is a tip off. Why are Short Sale's Neccessary?
Owners are "Upside Down" in their loans and this forces them to Short Sell. A Fair Market Offer still means you are getting a great deal. Short Sale by an Owner Although all lenders have different requirements and may demand that a borrower submit a different types of documentation, the following steps will give you a pretty good idea of what to expect. Call the Lender
Submit Letter of Authorization
Preliminary Net Sheet
Hardship Letter
Proof of Income and Assets
Copies of Bank Statements
Comparative Market Analysis
Purchase Agreement & If all goes well, a short sale will be approved. As part of the negotiation, you might ask that the lender not report adverse credit to the credit reporting agencies, but realize that the lender is under no obligation to accommodate this request. Credit report status is not always negotiable.
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