The Easiest and Fastest Way to Receive a Short Sale Approval
Short sales are becoming more common in today's housing market; however,
the process of how to actually get a short sale approved can still be somewhat
mysterious. It can often take months simply for a bank to gather all of
the information deemed necessary for a short sale approval while you sit
around and wait.
A short sale is a real estate transaction in which the home has not been
foreclosed upon yet but the owner of the property may be experiencing
some financial difficulties and needs to sell the home as quickly as
possible. As a result, they may be willing to try to get the bank that
holds the mortgage on the property to agree to a sale for less than what
is actually owed on the property in many cases. The advantage to the
seller is that they are able to unload the property without taking a hit
for foreclosure on their credit, even if it means they may not actually
realize any profits from the sale of the property. The benefit for the
buyer is that you may be able to purchase more home for your money.
Because a bank is involved in the decision process for the approval of
the offer, the process can be time consuming. Even so, there are some
steps you can take to have your short sale approved in a faster timeframe.
First, make sure that your offer is in line with the current market.
Banks simply are not willing to give away a property in which they have
an interest. Remember that short sales are still actually owned by the
seller. They are different from foreclosures. In most cases they will
still be in good condition; which is not the same as homes that have
actually been foreclosed upon and have made it to the auction block.
Banks will only be willing to agree to a short sale if the offer is
within the market range for that particular home.
Second, do not waste your time in obtaining a pre-qualification letter
as it will not mean much to the bank. Instead, work on obtaining a
loan serves as actual proof that you have
completed a loan application and provided documentation to the lender.
When you obtain the letter before you even look at the house you will be
one step ahead.
You should also make sure you know your price range. Don't make offers
on homes that are well outside your price range in the hopes that the
bank will agree to a much lower offer. If the sellers should actually
take an offer and it is submitted to the bank, you could still find
yourself waiting up to three months just to find out whether the bank
will be willing to take the offer. The best course of action is to
locate homes that are within your price range and make offers only on
It is also important to understand that when you make an offer you may
be asked to raise the price. If the bank comes back with a counter-offer
you need to be prepared and willing to adjust your offer if the request
they make is reasonable.
Furthermore, avoid asking for repairs. Banks are looking for easy
contracts, which means you need to be willing to buy the property as is
and with no repairs to be completed by the seller. If the house should
need substantial repairs you need to be prepared to find a contractor.
You also need to be prepared to put up a binder deposit along with your
offer. Banks are looking for buyers that are serious so be prepared to
put up as much money as you possibly can for the deposit.
Make sure you are prepared to move quickly with any and all requests. It
is not uncommon now for banks to have additional amendments which may
add to and/or modify the original contract. You should sign your side of
the documents as quickly as possible so that the process is not held up
and can move along as speedily as possible.
Finally, make a point to work with professional short sale real estate
agents who have experience in handling these types of transactions. Not
all real estate agents understand the intricacies involved in short
sales. It is far better to work with an agent who knows what they are
doing and what to expect to avoid encountering any additional delays in