How Fast Can The New Short Sales Process Be Closed?

Short SalesClosing a short sales process has never been quick and stress-free. Despite this, however, many homebuyers and real estate investors continue to chase after homes under foreclosure and are being listed as a short sale. Because, really, homes offered through a short sale have value that can sometimes be higher than brand new homes. Because short sale transactions continue to increase, changes have been made on lender policies to make the process quicker and more efficient.

What makes a short sales transaction take lots of time?

A short sale is the process by which a house is hold for less than the mortgage owed to the entire property. The key persons involved in this type of real estate transaction are the buyer, the seller, the banker or lender, and the listing agent.

The first step after the seller has decided to put the property up for a short sale is to contact the banker or the lender and seek approval to sell the house for less. Now, it’s a known fact that mortgage lenders and bankers will lose money by in a short sale. They are less likely to get even the money they have invested and loaned to you. If you are the seller, you will need to spend time to coax them and let them see that they will gain more benefits in a short sale than foreclosure. When they agree to a short sale, however, their main goal is to lose as little money as possible.

What is the new short sales process?

Basically, the first step when you decide to buy a home through a short sale is signing the purchase agreement. After this, you need to have the bank confirm, verify, and sign the purchase agreement. Then, ask your lender for your modified mortgage process.

Because of the number of approvals you have to get, completing the entire real estate transaction will take weeks. And it takes longer if you have more than one mortgage on the property. By the time you complete all the required approvals and verifications, you only have a couple of weeks left to close the transaction.

The new process involves a new and relatively faster approach to short sale transactions. In this new process, the lender is allowed to underwrite the loan as soon as both buyer and seller have signed the purchase agreement. This can now happen even before the bank holding the mortgage on the property give its approval.

The bank’s approval of the short sale is still required for the entire transaction to proceed. The only difference is that the lender has a head start. So while waiting for the bank’s approval other aspects of the short sale process is already underway. When you receive the bank’s approval, you’ll have more than enough time to close the transaction and meet the bank’s deadline.

Get more short sales information by visiting Jerry Pinkas Real Estate Experts.

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

Your partners in Myrtle Beach short sales investments.

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