How do Realtors handle short sales?

How do Realtors handle short sales?

A Step-By-Step Guide to the Real Estate Short Sale Process

  1. Get a Property Valuation Analysis.
  2. Get a Hardship Letter.
  3. Contact the Lender for a Short Sale Application.
  4. Prepare the Sales Contract.
  5. Assemble the Short Sale Package Together.
  6. The Loss Mitigator Reviews Your Short Sale Package.

What is a short sale broker?

Understanding Short Sales Brokers borrow the shares for short sale transactions from custody banks and fund management companies that lend them as a revenue stream. Short sellers aim to sell shares while the price is high, and then buy them later after the price has dropped.

How do I get approved for a short sale?

Gather the necessary documents for approval. Lenders typically require financial documents, such as your pay stubs, proof of unemployment, prior-year tax returns and bank statements. Proof of hardship will be required. Gather all your bills, such as medical expenses, that support the need for a short sale.

Can you lowball a short sale?

The seller’s mortgage lender will check property values in the area so a lowball offer is not recommended. Many banks are so overwhelmed with short sale requests and multiple offers that they will most likely not even counter-offer if you submit a lowball.

Does a Realtor make money on a short sale?

While a seller typically pays all real estate agent commissions and other closing costs, in a short sale the seller pays nothing; the lender or bank foots the bill.

What can a real estate agent do for a short sale?

A real estate agent can prepare a comparative market analysis (CPA), or a broker can provide a broker’s price opinion (BPO). A professional appraisal can be a powerful tool. The lender might request one of its own as well. The lender will want more than a value before it agrees to a short sale. It needs to know why the homeowner must sell.

How does a short sale work in a foreclosure?

A short sale enables homeowners to stay in the home until the sale is completed. A foreclosure forces homeowners to vacate. While a seller typically pays all real estate agent commissions and other closing costs, in a short sale the seller pays nothing; the lender or bank foots the bill. The short sale process

Can a bank take ownership of a short sale?

“Some banks may even prefer to pursue a foreclosure, since they not only assume ownership of the property but may receive bailout money from the homeowner’s mortgage insurance policy,” says Marlene Waterhouse, a real estate agent and the owner of Short Sale Solutions.

Which is an example of a short sale?

The easiest example is stock. The short sale of a stock involves borrowing stocks from a broker in order to sell them, and when prices fall, buying back the stocks to return to the broker, keeping any profit made. A “short sale,” in real estate, is a way to sell a financially distressed property before it enters the foreclosure process.

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