Short Sale Season - Part 2

In our previous blog we looked at the first steps to take in Buying a Short Sale. We have found our property, taken a look at what needs to be done and have started the ball rolling on our own financing. So what comes next? Let's take a look at getting you into that home!!

At this point, your real estate agent should speak with the lien holder's loss mitigation department. Because of privacy laws, the seller will have to fill out, sign and usually notarize an authorization for the lender to talk with you about the mortgage. Without this authorization the lien holder cannot discuss anything with you. It is not because they do not want to facilitate the short sale; it is because they must have the seller's permission to disclose mortgage information.

Once the lines of communication have been opened, the lender will usually have you fill out a Short Sale Application. Some lenders do not require this but be prepared if they ask for you to do it. You may also want to go ahead and have your proposal ready as well; that way you can give everything to the lender at the same time. This will help speed up the process. Your proposal should have a copy of the authorization letter, purchase and sale contract (this will have the price on it), an estimate of the property's value, and a settlement statement. Your real estate agent can help you prepare your proposal.

The final steps are pretty similar to a conventional purchase of a property. Your first proposal may be rejected by the lender. They usually will come back with a counteroffer. This is the hard part. You have put a lot of time into your offer but don't be afraid to walk away if the lender cannot meet your price. Just like any transaction, you should know your limit and stick to it!

Finally, all parties agree on the price and terms! Next comes the closing and the home is all yours. One of the most important things to remember is the process may be long and trying but the reward is great! Having a real estate agent to help you walk through the process will insure you will make it to closing with a smile on your face!!

Need help finding short sales in your area? Give Sandy's Team a call at (225) 677-SOLD or email info@sandyco.com . We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.