Why a Short Sale?
Properties nationwide have declined at a rapid pace and unemployment has risen. This has created an unavoidable scenario. Homeowners can't afford their mortgage and a regular sale will not cover the amount owed. Lenders have gone bankrupt due to the non traditional loans given during the good times and now find themselves with a growing list of REO properties, crippling legal fees and balance sheets unacceptable to their share-holders. The average foreclosure costs a bank over $50,000!!
A successful short-sale transaction can be a win-win for the homeowner and lender, avoiding a much more costly foreclosure process for the bank and allowing the homeowner avoid destruction of their credit with a foreclosure.
Some important facts to be aware of!
Short Sales can require many hours of negotiation and you definitely need some patience! Please be aware that short-sales will typically take 3-4 months to complete and many lenders are inundated with short-sale requests every day. We have the experience required to navigate this territory and have relationships with many regional and national banks so we know our way around the process.
Typical Lender Timelines (for each step in the short sale process)
- Get authorization on file with lender 2 Days
- Compile Short Sale Documents 7-14 Days
- Get Short Sale package on file with lender 3-7 Days
- Short Sale Package assigned to negotiator 10-14 Days
- Get BPO/Appraisal ordered 14-21 Days
- Schedule BPO/Appraisal with agent 5-10 Days
- BPO/Appraisal is received by bank negotiator 21-28 Days
- Negotiate/Obtain approval from negotiator 15-20 Days
Total: 77-104 Days