What Does a Myrtle Beach Short Sale Proposal Consist of?

Myrtle Beach short salesSuccessful Myrtle Beach short sales often depend on how the proposal was made and presented to the lender. Getting the lender to approve of a short sale is quite tricky and sometimes difficult, requiring a lot of time and effort from the buyer. However, this is the most important part of the sales process. Without the lender’s approval, the sale won’t go through. If the seller has more than one mortgage on the property, you, as the buyer, will have to impress all the mortgage lenders in order to purchase the house.

To ensure the lenders’ approval, your Myrtle Beach short sales proposal should consist of the following, aside from your application form and authorization letter.

  • Specific purchase price agreed upon by you and the seller.

When getting the approval of lenders, there is no room for offers and negotiations; they won’t allow you to make offers or negotiate. In fact, they wouldn’t be impressed if you asked them if they would take a large amount of dollars for the short sale for the property. They would be more impressed and more than likely to approve your proposal if you specified a reasonable amount that you would be able to pay without difficulty. Keep in mind that having the mortgage paid off along with the interests owed to them is more important to them than selling the property for a higher amount.

  • Evidence of the seller’s incapacity to continue paying for the mortgage

In order for the lender to approve a short sale, he or she must recognize and believe that the seller is no longer able to continue paying for the mortgage. You and the seller should be able to prove to the lender – through your proposal – that there is no other way to save the mortgage loan – and the lender’s money and profit on the property – other than a short sale.

Some of the documentation you can include as evidence are a hardship letter from the seller where he or she states the current situation he or she is in, divorce papers, delinquent accounts, state of bankruptcy, repossession of property and other assets, bank statements, and disconnection letters from utility providers.

  • Copy of the property’s appraisal

If the appraisal reveals a low value for the property, include it in your proposal. If not, you can consider a broker’s price opinion if it says the house is worth less than the loan. Your goal here is to show the lender that reselling will not be an option as the property’s current value will not satisfy the amount owed to the lender.

To support your statement, include proof that holding on to the property longer would only cause the lender to lose more money. You need to establish to the lender that the only option left to save the loan is to approve the short sale.

  • Costs and liabilities in maintaining the property

Before taking into account the possibilities of Myrtle Beach short sales, lenders will often try to keep the property and look at other options. And you don’t want this to happen. So you need to make the lender realize how much it would cost him to keep the property. Again, the goal is to show the lender that the only option to make money out of the property is through a short sale. You can include photos of the areas of the house that need repair as well as estimates of the repairs.

Contact Jerry Pinkas Real Estate Experts now for more information on Myrtle Beach short sales.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
843-222-1926
www.myrtlebeachshortsaleteam.com

Your partners in successful Myrtle Beach short sales.

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