| A Short Sale, whether you are the buyer or the seller, | | | | from a real estate lawyer and an accountant! |
| can be a complicated and stressful event. Short Sales | | | | If you are considering purchasing a home that is up for |
| are oft touted as alternatives to bankruptcy or | | | | Short Sale, you have a lot of homework to do. First, |
| foreclosure; but it's not really as simple as that. Not all | | | | employ a real estate lawyer and an accountant; you |
| properties qualify, and not all buyers qualify as Short | | | | will need the advice of professionals to get through this |
| Sale buyers. | | | | process. There are some factors you should be |
| If you are considering a Short Sale of your current | | | | aware of, though before starting this process. You |
| home, beware that lenders do not have to accept this, | | | | should get pre-approval from your lender. You should |
| because they are typically taking far less than is owed. | | | | be able and willing to put down 1-3% of the total asking |
| Some examples of what might qualify you are: | | | | price. You should expect the bank to take 6-8 weeks |
| unemployment, divorce, medical emergency, job | | | | to decide on your offer. You should not expect the |
| transfer, bankruptcy, or death. These are qualified as | | | | seller or the bank to do any repairs or have any |
| personal hardships, and lenders are more likely to | | | | inspections done; those will be your responsibility. Finally |
| approve of Short Sale under one or more of these | | | | check with the listing agent on the home before |
| conditions. This type of sale is sometimes an option | | | | making any offer. Yours is not likely to be the first, and |
| when the homeowner owes more to the lender than | | | | you want to make sure that you are offering the |
| the home is worth. In both types of situations the bank | | | | highest bid to date. |
| must be provided with documentation including but not | | | | Whether you are the seller or the buyer, Short Sales |
| limited to: tax returns, W2's, financial statements, payroll | | | | are not for the faint hearted. If you decide that this |
| stubs, and a hardship letter. If you are considering a | | | | method is the best option for you, these tips should |
| short sale of your home, it is best to obtain legal advice | | | | make the process less overwhelming. |