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Buyers
A short sale involves the homeowner entering into an agreement with the mortgage lender regarding the sale of the home. It is different from a standard home sale in that the bank agrees to accept a price for the home that is less than the amount owed on the mortgage note. While this results in the bank taking less than what is owed, it is typically a better return than a foreclosure would bring. Short sales make sense for homeowners as well, as it gets the buyer out of the underwater mortgage without having a foreclosure on their credit report.
Because of the agreement to sell for less than the loan amount, a short sale can often offer substantial financial savings to a home buyer. But it’s important to understand that the short sale process has its drawbacks for buyers as well.
Once an offer is made and accepted by the seller, it is the bank’s turn to decide if they will agree to the short sale or not. This is the part of the sale that is anything but short – the bank will do their due diligence to ensure that the sale isn’t fraudulent and that the sale price is the best they’re going to get. There is no hard and fast rule on how long this process can take, but it is typically one to three months before the bank will respond. It can take longer sometimes, however, especially if there is more than one mortgage on the property or other liens, such as HOA liens.
The primary tool a bank uses in valuing a home is a broker’s price opinion or BPO. During a short sale, the bank will order a BPO from an independent realtor to determine what the fair market value of the home is. If the BPO comes back higher than the price you agreed upon with the seller, the bank may ask that you up your offer. If the bank is ultimately happy with your offer, they will sign off and allow the short sale to go forward.
Vohwinkel law has provided las vegas valley residents superior case results relating to personal injury, bankruptcy, foreclosure and more! Contact us today!