Our guide on short sales and what to do if you’re in a short sale situation.
Today, we’re going to talk to you about short sales. They’ve been trending in the news lately, but a lot of people have questions about what they are. Fortunately, we’ve lived through one of the biggest short sale markets in Southern California, so we have plenty of experience to bring to the table.
A short sale occurs when a lender receives a payment that is short of the amount of the loan. Maybe the market shifted, or maybe a property was over-leveraged. Either way, the lender is asking for their money, and it is not available. In a short sale, the lender can still approve the buyer to buy the home, although usually with strings attached.
“If you find yourself in a short sale, you want to deliver your lender as complete a package as possible.”
If you find yourself in a short sale, time is of the essence. To make sure your short sale approval goes through, it is important to get together your list price, your estimated closing statement, and all the seller costs. You want to reassure your lender that everything is in order. It is important to get all your documentation to title and escrow as quickly as possible because short sales are usually only approved for a small window of time.
Basically, if you find yourself in a short sale, you want to deliver your lender as complete a package as possible. This makes things more efficient and much easier for the loss mitigation expert at the lending agency, therefore making your approval more likely.
At the end of the day, your lender is under no obligation to approve a short sale. That’s why it is so important to get organized as quickly as possible. We have been in this situation countless times, and we know exactly what to do to get your short sale approved. If you would like us to help with your short sale situation, or if you have general real estate questions, do not hesitate to reach out to us. We’d be happy to help.