Friday, October 29, 2010

Tips to speed up the short sale process

The short sale can take up to 90-120 days for approval which can be a pretty long wait for most. The seller and the buyer need to be educated with the process and made aware that this is not a regular ‘traditional’ sale and what they should expect.
Selling a home in a short sale needs a very different approach

Hardship documentation
The hardship letter should not be a sad saga of what the borrower has gone through but it should realistically portray the difficulties that the borrower has gone through so as to convince the lender about the inability of the borrower to repay the loan. The documentation should have supporting proofs like pay stubs, medical bills, financial statements etc. The numbers in all the supporting documents should add up to show the lender that the circumstances have changed and the borrow has done all he could to avoid the results.

Condition of the home
Most of the times the lender doesn’t want to invest additional money into repairing the house before a short sale. The condition of the house plays an important role in the decision of the prospective buyers. If the house is in a terrible condition the buyers are going to want to pay a very low price for the property. On the other hand the lender is going to try and make sure they lose least amount on the mortgage. This will lead to a mismatch in the price that is being offered by the market and the short sale price approved by the lender. This will lead to a delay in the process. Hence it makes sense for the seller to make sure the house is in a presentable situation so as to minimize the gap between the offered and the approved short sale price

Competitive Pricing
Competitive pricing is essential for any sale to take place. The seller and or his agent must do a thorough market analysis to come to the asking price for the property. The sellers agent must do a competitive analysis of the neighborhood so as to reach a fair asking price. The lender will also do their own research and number analysis and come up with the approved short sale price. At this point the seller and his agent should be ready to defend their analysis. A competitively priced property will not stay on the market for long.

For Buying or Selling, You Need a Teacher that gives you straight answers. For more information on buying, selling, or renting out an income property in San Diego, please call Frank Rashid's cell phone at (858) 676-5250 or email him at More to follow within the next couple of weeks.

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