Short Sales Tips For Sellers, Buyers, Brokers, And Lenders

Short SaleThere are several parties involved in a short sales process: the seller, buyer, broker, and lender. For the transaction to be successful all have to play critical roles and all will have to coordinate with each other. You as the buyer will have to be very patient in working with the rest of the gang and coaxing them to do their part so all of you will benefit from the short sale transaction. Although, lenders will probably require more coaxing than others as they basically don’t turn to short sale transactions until the last minute.

Learning more about short sales

A short sale transaction is an alternative – the best alternative for home owners and sellers – to foreclosure. Proceeds from the sale are most likely not enough to pay off the mortgage debt on the property. This is why the lenders are not always eager for these types of real estate transactions. They will want to check out other options available for them prior to looking at the short sale proposal submitted to them. Their approval is key in a successful transaction.

Once they are approved, the process will run smoother and faster, allowing all parties involved to benefit: buyers purchase a home at a fraction of a cost, sellers get rid of their debt without having to go into foreclosure, brokers increase their reputation, and lenders relieve their books of a delinquent and unpaid loan.

Short sales tips for everyone

  • Make sure the mortgage company is familiar and well informed with the local market so they can look at your proposal with a better eye and allow them to make a better decision.
  • Buyers will have to be patient in waiting for the lender’s response as the lender will most likely consider and look at other things before giving their approval. For example, most lenders will check all assets of the homeowner and compare this with the selling price. Some may also try to negotiate with the brokers to have their commissions reduced. Keep in mind that the primary goal of the mortgage lenders is get some money from the transaction and not to get rid of the delinquent property.
  • Have the sellers consult with their real estate lawyer for the legalities of the transaction. The seller’s goal is focused on relieving the mortgage debt and not about profiting from the property.
  • Make note of how much time and effort your broker is putting into the transaction and remember to fairly compensate him or her depending on the work he or she did.
  • Work with the lender and help them realize that they will save more money from the property if they approve of the short sale. Although, they will receive the money from foreclosure a lot faster than in a short sale transaction, they will have fewer expenses to pay for in a short sale transaction; hence, they save more money in the process.

Call Jerry Pinkas Real Estate Experts now to learn more about short sales.

Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577

Your partners in successful short sales transaction.

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