Short sales are pretty rare in today’s real estate market. The rise of short sales was between the years 2008 to 2012. During those years, realtors and buyers took a keen interest in the short sale, and the short sale was at its peak in the real estate market. But slowly, after 2012, the short sale concept started to fade. But still, you can observe these types of distressed sales becoming a part of the home buying process again in some way. If you make a short sale, you may get a good profit from a property. This process can be long and awkward. The potential buyer can adopt some tips to speed up the short sale process. For these tips, please give this article a must-read.
What is a short sale?
“A short sale is defined as when a lender decides to accept a mortgage loan payoff amount that is less than what he or she owns. A financially distressed owner does this to ease the sale of the property. The lender waives off the remaining balance of the mortgage”.
Requirements of a short sale
The short sale requires a huge amount of guts and patience. This type of sale also depends on a lot of luck. A short sale also allows the potential buyers to buy the property at a negotiated price.
Tips to speed up the Short Sale
Some of the common tips to speed up the short sale process are as follows.
Firstly choose the lender for your short sale wisely. As a buyer, the main holdup to any short sale process is the financing of the property or any home at the right time. Maximum five to six weeks or more are the main requirement for mortgage approval.
Always be ready with all the important documentation that is the main need for the short sale process. For a successful and speedy short sale process, the lender needs pay stubs, bank statements, income statements, and the customer’s tax returns. In some cases, several additional documents may also be required. Kindly timely respond to your lender’s requests for important information. The speed of short sales increases by answering the key questions. But always be quick and more professional.
Try to find out those short sale property deals which require minimum financing. The transaction of short sales becomes complicated in two cases mostly.
- If the property has more than one mortgage attached.
- If the short sale property has mortgage insurance that is secured to the mortgage loan.
Expert is really not the requirement of the short sale. You can also hire a realtor who is aware of the short sale process. When a real estate agent passes through the process of short sale frequently, they are more likely to become familiar. After that, they know very well how to speed up the short sale process.
I hope you get enough tips to speed up the short sale process. You can easily use any one of them to speed up the short sale. Short-sale properties contain the homes that are present at the most reasonable price and condition in the market. Some people who take a keen interest in investment buy short-sale properties. After sometimes, when the conditions of the market become favorable, they quickly resell the property. By reselling the property, they make a very good profit. Some people choose to keep the homeownership and rent the property and generate a good amount of income. If you are looking for expert opinion and guidance, contact Aceland Mortgage.