In the past 24 months the term Short Sale has become a household word. The short sale process has been around for a while, but in recent economic times – the sheer number of them has not been seen. This uptrend in Short Sales has created a significant bottle neck for Short Sale departments across the country.
In recent months, the processes have gotten much smoother, new legislation and informed agents and buyers are scooting the process right along. But how long does it really take?
In my experiences, I’ve waited up to 4+ months for a bank to process and respond to a Short Sale other times a matter of ten days. Larger banks with heavier bad debt loads (or potential bad debt loads) take the longest. With all your paperwork put together, a short sale can be relatively painless, and can take usually 60 to 90 days from receipt of an offer.
Who qualifies for a Short Sale? Great question. A short sale is merely selling a property and netting less than what is owed on the property. This requires approval and forgiveness of the debt from the bank. Not just anyone can short sale a home. If you’re sitting on $50,000 in the bank and really really want to take advantage of the great prices in a new development, but can’t sell your home for enough to pay off the bank – you won’t qualify.
If you’ve lost your job, are actively trying to find another job, but will run out of money or expenses are too high to create a significant cash crunch that may have or will cause you to be unable to pay your mortgage – that’s a better scenario.
A mortgage company will want to see two or more months of bank statements, any financial information you have and you’ll need to write a letter stating why you cannot or may not be able to stay in the home. They’ll determine if you qualify and approve the sale.
A lot to know, right? That’s why I’m here. I have resources available to streamline the whole short sale process. Fill out the Spokane Short Sale form and I can get the process moving for you.