What to expect when buying a short sale?

Answer 1

# The bank or lender wants to see the entire financial picture, so the bank will need a copy of back taxes, paycheck stubs, bank statements, etc. They will also want to know what all of your assets are. # The bank may want you to sign a promissory note for the difference in the amount sold and the amount owed on the property. # When the bank gives final approval on a short sale, they may request that the escrow close in as little as 20 days, or sometimes sooner. # As the seller, you cannot receive any proceeds from the sale. None. Period. # Your real estate agent, escrow company, and title company may have to work for reduced fees. # The banks are very overwhelmed with short sales and many times a decision can take up to 60 days. Although, recently the approval process has been streamlined at many lenders. # The property may be foreclosed on during the short sale process, because the bank can not process the short sale in time. If you have a strong enough agent, you could be able to get the foreclosure postponed. # Do not expect to receive any information on a regular basis, as there will be weeks that go by with no news from the lender…which can be perfectly normal. But just in case, call your contact. # The bank will want to get a BPO (Broker Price Opinion) and/or an appraisal of your house. # Be patient. This is the best policy. Try to avoid being stressed out over something that you are not able to control. If you are in the hands of a good well trained real estate agent, you should be good.