How long short sale process takes?

Be aware the short sale process could take much longer than a traditional home purchase. Even with a qualified agent, it’s not uncommon for short sale transactions to take six months or more to close.

What are the steps in the short sale process?

The short sale process for sellers can be broken down into five simple steps: Identify the current situation. Demonstrate provable financial hardship. Enlist the services of a qualified agent. Gather the appropriate documents.

Why does it take so long to get a short sale approved?

In one instance, “the short sale approval process took so long that the real estate market improved and the bank increased the price they were willing to accept for the house, even though the borrower’s offer had already been accepted.”

How does short selling work and how does it work?

Short selling is a fairly simple concept: an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers are betting that the stock they sell will drop in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender.

What does short sale mean in real estate?

A short sale is a turn of phrase used to describe the process of a homeowner selling their property for less than they owe on the outstanding mortgage. In the event it becomes clear the borrower won’t be able to maintain their mortgage obligations, the original lender may permit them to execute a short sale.

How to start the short sale process for real estate?

A Step-By-Step Guide to the Real Estate Short Sale Process 1 Get a Property Valuation Analysis. 2 Get a Hardship Letter. 3 Contact the Lender for a Short Sale Application. 4 Assemble the Short Sale Package Together. 5 The Loss Mitigator Reviews Your Short Sale Package. 6 Negotiate the Short Sale and Go to Closing.

Why do you want to do a short sale?

There are many reasons homeowners opt for a short sale, but one of the most common is to avoid going into foreclosure. If you’re a buyer, a short sale can enable you to buy a property at a discount because the seller is distressed and has fewer options.

How long does it take to close a short sale?

This is the typical short sale process from the bank’s end of things: It acknowledges receipt of the file. This can take from 10 days to as long as a month. A negotiator is assigned. This can take two to three days, or it can take 30 days. A broker price option is ordered.

When is a short sale an option in foreclosure?

A short sale offer may be comparable to the value a property could bring at a foreclosure auction. Generally, a short sale is only an option when your outstanding mortgage balance exceeds the home’s market value.