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A Short Sale is a workout option that allows the homeowner(mortgagor) to sell the home for less then the total amount owed on the mortgage. Upon final approval, a short sale can help mortgagors avoid foreclosure action. Although there will still be an impact on the sellers credit history, the effect is less then if a foreclosure had occurred. The mortgagors credit report will be noted as follows: "Settled for amount less than owed." A homeowner opting for a short sale must contact his lender to get approval. A appraisal of BPO ( Broker Price Option) from a Real Estate agent will then be order. The seller then fills out his short sale application and it is assigned to a Loss Mitigation Specialist. This specialist will then review the application to see if it is acceptable. A must in the short sale process is to be sure all information requested by your lender is given to them in full. Short sales are an excellent way for sellers to get some breathing room and relief in the changing Real Estate market. It is also a good opportunity for buyers to purchase properties below there current market value in some instances. The process and approval of short sale offers can take some time. The offer has to be reviewed and approved sometimes by a committee or a group of investors. This can take the longest time in the short sale process. Contracts have to be drawn up to allow for this to occur within a reasonable period of time. In the Charlotte area MLS, Real Estate Agents are required to disclose if a property is a short sale. The bottom line is Short Sales are a great way to buy and invest. What are you waiting for! |
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