short sale process

Short Sale Process

Understanding the Short Sale Process

There are many reasons that can push somebody to settle for a

short sale process.

However, it is important to understand that there are consequences to

choosing this mode of transaction.

The legal and tax implications are many.

Therefore, an individual who wishes to walk down this road should carefully consider what they hope to achieve.

A short sale process is where one or more lenders choose to accept the

sale of the house that is less than the remaining balance of the loan that

they had advanced.

This is usually transacted as payment in full for the full amount.

There are many scenarios that still go with this transaction.

Due to the harsh economic times, many people are increasingly finding it

difficult to meet their obligations in terms of loan repayments.

However, one should be careful because there are many short sale

process scams out there.

Unscrupulous people have ventured into the scene and have perfected the

art of conning unsuspecting clients.

The Intricacy of Short Sale Process

Any short sale process is a challenging process.

It requires well trained professionals to handle and manage the transactions.

This is the only way that a client can be assured of getting a good deal.

If this is not the case, one can easily get in a precarious position having

given out your house and still having a loan to repay.

There are many ways in which an individual can take advantage of short

sale processes.

However, it requires prior knowledge of the law governing such

transactions.

These laws were put in place to protect both the lender and the

borrower.

It is an attempt to level the playing field to make sure that no one takes

unfair advantage of the other.

To have a successful sale process, one needs to have a complete, convincing

package.

This is because when people opt for this transaction, the value of the property is often lower than the

remaining loan amount.

It is, therefore, necessary to be in a position that can convince the other

party that it is worthwhile for them to seal the deal.

Enlist the help of a professional to create a compelling story.

This should be able to list the hardships that you are facing.

The lender will take time to review this story before agreeing to enter into a

short sale process agreement.

Meanwhile, it is best to commence the process of having the property listed

and getting the necessary legal documents authorizing the process to

go ahead.

Taking advantage of processes that can run concurrently is important.

This will shorten the time frame of going about the entire transaction.

It can easily shorten the time by several weeks.

Setting up mechanisms that will ensure you only get to deal with

serious buyers who will stick through the whole process is an absolute

necessity.

However, one needs to be aware that as much as it seemingly takes off the

pressure of repaying the loan, it is possible to lose much more in terms of

undervaluing the property during a short sale process.

If you want to sell your house but it’s worth less than the amount remaining

on the mortgage, a short sale may allow you to sell your house and settle

your mortgage debt.

By completing a short sale rather than allowing your house to go through foreclosure, you avoid eviction and

your house will not be sold at a public sale or auction.

Plus, depending on your circumstances, you could qualify for

financial assistance to help with relocation costs.

Short Sale Process