After accepting an offer, the homeowner or his realtor must forward the offer to the lender for review. If the lender approves the offer, the short sale moves forward. If the lender does not accept the offer, the buyer may counteroffer or end the process.

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 form is sent when a short sale is completed?

A completed and signed IRS Form 4506, “Request for Copy of Tax Form”. A completed and signed personal financial worksheet.

Will the bank take less on a short sale?

Understand that with a short sale, if the appraisal comes in lower than the offer price, it’s usually up to the buyer to cover the discrepancy. There’s little room for negotiation with the seller, and it’s unlikely the bank will lower the price at that point.

Why do banks take so long to approve a short sale?

Short sales happen because the loan on the property is larger than the sale price minus all the sale expenses. With a short sale, the seller is asking the bank to take less than the amount owed. The seller’s bank must approve the sale, and this is where the big delays can happen.

How long does it usually take a lender to review a short sale package?

Submission of offer and complete short sale package from the seller. Bank acknowledges receipt — 10 to 30 days. Bank orders a BPO or appraisal — 30 to 60 days. File is reviewed — 30 to 60 days.

How long does it take to close on a short sale?

Be aware the short sale process could take much longer than a traditional home purchase. Even with a qualified agent, it’s not uncommon for short sale transactions to take six months or more to close.

Can a house be sold as a short sale?

While selling a home as a short sale is hardly ideal, many experts argue it’s smarter than pursuing more drastic measures like foreclosure. Foreclosure is when a homeowner falls so behind on the mortgage payments, the lender repossesses the house, often against the homeowner’s will, then tries to sell it.

Do you pay closing costs 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’s the Commission for selling a house without an agent?

The agent’s commission is 3.3 per cent (including GST) for a sale price less than $500,000 and 3.85 per cent (including GST) if the sale price is more than $500,000. The property sells for $585,000. You might interpret this as $500,000 having a 3.3 per cent commission and $85,000 having 3.85 per cent commission.

What happens if I refuse to sell my house to a buyer?

You could refuse to sell him the property. Doing this would be a breach of contract for which the buyer can either sue you or take to you arbitration, depending on what your contract says. The court or arbitrator could force you to sell the property to the buyer, pay him damages and pay his attorney fees.