Short sales aren't always simple and straightforward. In fact, sometimes they're challenging to get approved. The economy is entirely different than it was ten years ago. So many people are now asking what the secret to getting a short sale approval is in today market? A lot of buyers lose patience with this kind of deal and feel discouraged, so they ultimately move on. We're going to look at important considerations to help with the approval process allowing everybody to move forward.
Short sales are a lot less frequent nowadays, but they still do happen. Families find themselves underwater for any number of reasons. Whatever the situation that landed them in their tough spot, a short sale can be an excellent way to get out. Simply put, a short sale is a tool used to sell a home when a family owes more money on the mortgage than what the property is worth. These types of deals can take a long time to process and can even be challenging to get approved.
One of the significant issues with the short sale process is that it can take a long time to process and every minute counts when families are in a distressed situation. As a result, mistakes are sometimes made causing delays which further perpetuates the problem. There are three things that people sellers need to do to make the approval process that much smoother.
The first thing is a must, and it involves a seller correctly preparing for submission a complete package to the bank. Having somebody who can guide you through that process to make sure your package is complete is vital. If a family is attempting to do this on their own without guidance, it can lead to a big problem especially in situations like selling probate properties that are underwater. In fact, having an experienced seller on your team can make or break the approval process entirely.
This topic links directly to the next component, and it involves working with a good negotiator on your team. The Negotiator will ideally have enough experience to know the uniqueness of your situation and even a little bit about each person they’ll be talking with at the bank.
The reason this is important now more than ever before is that a lot of banks are coming back with higher pricing because the economy has improved significantly. Having a good negotiator on your team will allow you to counter the price using a couple of proven techniques. For example, your negotiator can prepare an inspection from a contractor itemizing the needed repairs using a comprehensive report. This report should have close to a hundred pages with detailed descriptions including images from a reputable contracting company. The Negotiator can work with the bank explaining why their BPO comes in high.
Having complete clarity when describing your hardship is another central element for short sales in todays market. This hardship letter should explain in detail all aspects of your difficulty including proof to back up your claim. It will also need to qualify for what is considered a hardship with your lender. Your hardship letter should also include facts as to why your situation isn't temporary.
To conclude having a complete package sent to the bank along with having a good negotiator on your team is very important. Showing a true hardship backed with detail and having all this submitted to the bank before they've issued a foreclosure date are the secrets for having your short sale approved in today's market.