subject: Is A Short Sale Best For Your Family? [print this page] A Short Sale, whether you are the buyer or the seller, could be a difficult and stressful affair. Short Sales are frequently thought of as alternatives to bankruptcy or foreclosure; however it's not really as easy as that. Not all houses meet the criteria for Short Sale, and not all buyers meet the criteria as Short Sale buyers.
If you are considering a Short Sale for your current residence, beware that lenders do not have to accept this, since they are usually taking much less than is due. Several illustrations of what can qualify you for Short Sale are: unemployment, divorce, medical emergency, occupational transfer, bankruptcy, or death. Lenders are more apt to approve of a Short Sale when the seller is going through an private misfortune such as those listed above. Short Sales are also occasionally an option when the homeowner owes more to the lender than the house is worth. Whether or not your Short Sale is based on the former or later, the lender will necessitate such documents as: a declaration of hardship, a few years worth of tax returns, the property owners W2's and payroll stubs, along with existing fiscal statements. The problems involved in the Short Sale of a residence, make getting expert legal counsel and financial counsel a necessity.
If you are considering purchasing a home that is up for Short Sale, you have a lot of research to do. Buyers will benefit from both expert legal and fiscal guidance throughout the Short Sale procedure. There are a few issues that potential Short Sale buyers ought to be aware of before becoming involved in this route of action. 1-3% of the asking price is needed as a down payment. The lender will take at least 6-8 weeks to come to a decision on your bid; don't expect them to finish this procedure any faster. Any inspections or maintenance work will be the responsibility of the buyer, and not of the seller or of the lender. The buyer must not present an offer letter devoid of consulting with the listing agent. If other offers have previously been made, it is silly to go to the agent with a inferior bid than those previously presented.
The experience of a Short Sale is likely to be complex whether or not you are the buyer or the seller. If you decide that a Short Sale is the best choice for you, these tips should make the process less overwhelming.
