Posted by Bradford Miller Law, P.C. - Experienced in Real Estate, Landlord Tenant Law, and Estate Planning. Visit us online at http://www.bradfordmillerlaw.com/.
Here are ten important points to remember about short sales:
1) They take time. On average, short sales take between 4 and 6 months to complete from start to finish. But it depends on the lender. I have seen some properties close within 2 months. But again, it all depends on the lender.
2) The seller will need to prove a financial hardship in order for the bank to consider the short sale. If you have a lot of money sitting in the bank and are just looking for the lender to take the loss on the property, a short sale is not for you. Through our office and your real estate agent, we will provide the necessary paperwork for the lender to consider your financial hardship. In my experience, lenders have been very responsive to the financial hardships of Sellers and will likely agree that a short sale is the best option.
3) The Seller can receive no proceeds from the sale. The bank pays all customary closing costs such as agent commissions, taxes, title fees and attorney’s fees.
4) All real estate sales contracts should use the appropriate short sale rider and any agent commissions must be contingent upon lenders acceptance.
5) The seller must still accept an offer however it will be subject to lender acceptance. In other words, the lender must approve the terms of the offer as well as sign off on the seller’s financial hardship circumstances.
6) There is no guarantee the bank will approve the sale.
7) When an offer is presented, the bank will do its own research on the property by ordering a brokers price opinion (“BPO”). This is similar to an appraisal. Therefore, if the offers are lower than what other homes have been selling for, the lender may reject the short sale or counter at a higher price.
8) It is very important that the Seller, listing agent, and our office work together. This will ensure that the process goes as smoothly as possible.
9) Sellers should use a real estate agent and attorney who are experienced with short sales.
10) Sellers should get our office involved immediately. Bradford Miller Law, P.C. has extensive experience with short sales and can help ensure the process goes as quickly and smoothly as possible.
Please note this is intended to give general information to the public. Although the information is generally accurate, it cannot be guaranteed and this information should not be construed as legal advice upon which a reader can rely. In all cases, please consult a lawyer before acting. This is intended to be advertising, and not solicitation, or legal advice.
