Many people still find the short sale process to be a complete mystery, even after it has been around for so long, however, if you are not exactly sure how the short sale process works, there is no need to be alarmed. Many buyer’s agents find themselves confused, buyers who are puzzled are seeking direction, and not every short sale agent is aware of how to make a short sale. Maryland Short Sale Company can help when it comes to short sale vs foreclosure.
Yes, you would believe that all people in the real estate industry would at least know a thing or two about the short sale process, sadly, however, the short sale process is not exactly everyone’s cup of tea. That being said, here is a brief explanation of the short sale process.
The Short Sale Process
There are two basic reasons that banks grant short sales. The number one is if the seller has a hardship, and number two is if after paying the costs of the sale, there is not enough equity in the home to be able to cover the mortgage. A financial package must be prepared by the seller; this will be submitted to the short sale bank. Although every bank has their own set of guidelines for a short sell process, the basic procedure is quite similar from one bank to the next.
A buyer may have to wait quite an extended amount of time before they receive a response from the short sale bank. It is crucial that the listing agent calls the short sale bank regularly and keep very careful notes of the short sale process. Buyers may at times grow very impatient when waiting for their short sale approval that they tend to feel the need to cancel if they do not receive their answer within a specific time frame.
This attitude is not the best for a buyer to have, as a matter of fact, it is not only self-defeating, it will also most definitely not speed up the seller’s short sale process. If a buyer is really not the patient type, then perhaps going through a short sale process may not actually be the best option for them.
At times buyers have been known to get so annoyed and angry due to how length the short sale process can be that they even cancel and do not let anyone know, not even their own agent. There are short sales processes which obtain approval in two to eight weeks; however, others can take up to as long as ninety to one hundred and twenty days on average. The length of the quick sale process generally depends on the investor and not on the short sale bank.
An experienced short sale agent can help speed up your short sale process; they can do so by staying on top of your file as well as holding the short sale back accountable. It is imperative that they check in with the short sale bank at least once a week. It is also often necessary for them to recognize the behavior of negotiators that are incompetent and request a replacement if needed. It is important never to be afraid to escalate.