What is a Short Sale in Real Estate?
What is a Short Sale? A short sale is a sale of mortgaged property where the proceeds from the sale are insufficient to pay in full the seller’s outstanding mortgage and any other liens against the property and the seller lacks sufficient other assets to pay the remaining amounts due on the secured debts. Because […]
How Will a Short Sale Affect My Credit?
A short sale will lower your credit score, but it depends on how many mortgage loans you have and the length of time the loans are delinquent. Generally speaking, if you have one mortgage loan and you are more than 30 days behind, you can expect your credit score to fall at least 100 to […]
Why Mortgage Lenders Make Short Sales Take So Long?
In many situations, the mortgage lender or servicer cannot get out of their own way. They create inane reasons why they cannot make a decision on whether to approve a real estate short sales. Below are just some of the reasons we have seen. 1. The sale contract had the buyer’s name misspelled in one […]
Do Fannie Mae, Freddie Mac, FHA, VA, and USDA Waive Deficiency Judgments for Short Sales?
Fannie Mae Fannie Mae used to ensure that the deficiency would be waived with all loans that they own or guarantee. However, in 2011 Fannie Mae made an amendment to that policy. Fannie Mae now reserves the right to pursue a deficiency judgment on people who they believe strategically defaulted on their mortgage. In other […]
Benefits of a Short Sale
It is important to understand the benefits of a short sale to each of the parties involved. Why would a seller want to cooperate? Why would a lender accept less than what is owed? Why would a buyer want to wait for a short sale to be approved? Why would an agent take on the […]
Who are the Players in a Short Sale Transaction?
It is important to understand who is involved in a typical short sale. As an agent or investor, you will be dealing with each of these players. Sellers. They are also referred to as the Borrower or Homeowner. Lenders. These are the banks or investors with liens against the property. In many cases, the loan […]
8 Alternatives to a Short Sale
A short sale may have legal, credit, and/or tax consequences. There are several alternatives to a short sale. These other options include: Make payments to reinstate the loan and keep the property. Sell the property and bring cash to close escrow. Attempt a workout with the lender. Assumption of the mortgage by a buyer. […]
Legal Issues With Short Sales
We’ve described many of the benefits of a successful short sale. Now we’re going to make you aware of many of the legal issues associated with short sales. Consequences of Short Sale for agents 1. Inability to handle the workload. Some real estate agents, in order to obtain a listing, promise their clients that they’ll […]
What Buyers Need to Know Before Purchasing a Short Sale
1.) During a Short Sale Process, neither the seller nor the lender is likely to make repairs to the property. Many short sale properties have deferred maintenance, as the seller may stop paying for maintenance as money becomes tight. By the time the sale occurs, many short sale sellers are either unable or unwilling to […]
When Should Home Inspections be Done in a Short Sale Transaction?
Why a buyer should wait until they have short sale approval before conducting home inspections? If the buyer’s offer price is not approved by the seller’s mortgage lender, then the buyer does not spend money on an inspection for a home they cannot buy. The condition of the property may deteriorate from deferred maintenance […]