So what exactly is a short sale? A short sale property is a pre-foreclosure. Typically the owner of the property has negotiated with their lender to sell their home for a price less than the remaining balance of the loan.
Over the past several years, the number of short sales on the market in metro Atlanta and other cities has risen. Many home owners are opting for this rather than getting a ding on their credit with a foreclosure (although a short sale may affect your credit too). For buyers, this can be a very attractive deal because you can get a home well below market price. But there are important things to know….
If you’re the buyer:
- Start searching for short sales about 6 months before you are ready to purchase. Typically, the purchase of a home can take about 30-60 days. With short sales, the process can be longer because the seller has to get permission from the lender to sell at your asking price.
- Inspect the home. Just like you would inspect a foreclosure or any other property, you should make sure that you have an inspector do a report on the home.
- Get an appraisal done. In the short sale process, the buyer pays for an appraisal and the lender also has the property appraised.
- Find out if HOA dues are current. It’s good practice to find out if the seller kept up with HOA fees on the property. Ask your realtor to check into this.
If you’re the seller
- Find out if you meet the requirements. Every lender typically has a specific set of criteria that you must meet in order to qualify for a short sale. Ask your realtor for the best way to go about this and also consider contacting your lender and asking them about the short sale process.
- List your home for sale. Many lenders will want you to get with a realtor to list your home for sale. This gets the process going.
- Keep the property in good condition. Your lender may approve your short sale and your home may be listed for sale. It’s best to try to get your home under contract with a buyer as soon as possible to get the lender’s engaged in the process of keeping your paperwork on the top of their desk. To get it under contract, you should treat your home as if it were a regular home sale. Take care of the exterior, interior, and make any repairs or improvements.
- Be persistent in following up with your lender and keep ALL paperwork. We’ve seen instances where the lenders are overwhelmed with short sales and foreclosures. It’s a good idea to call them once a week to ensure that they have received any required paperwork or documentation. Keep copies of everything you send because you may find yourself resending it again.
We’re pretty knowledgeable about the short sales process and we’ve walked many of our clients through this process. What questions can we answer about short sales?
Short sell to buyer
If you’re considering buying a house, it could be better to start earlier because of new class of homes called short sells or pre foreclosures
These homes take 6 mos to close from the time of putting offernand contract..
With a normal sale about 60 days from contract
Short sells have larger process..
Seller ,ust receive npbank approval to sell propperty for less than what’s owed
Once you identify a house and negotiate with seller, seeker goes back to bank and asks permission.
We’ve seen and worked with clients where it’s quick