"SHORT SALE" PROPERTIES"
A short sale is when the Seller is attempting to sell the property for less than what is currently owed to the bank (lenders). For these properties, offers are submitted to the lenders for approvals as they have the final say in what they will accept or if they will accept a partial payoff on the balance owed (to satisfy the mortgage).
Though these are a great opportunity to purchase a property for less, there are some requirements, timeframes, and concessions often associated with these transactions. Items that the seller usually pays for are often at the buyers expense, like termite inspections, cleanings, and staking of the property (for homes) or condo documents. Also, the processing time for these offers can take anywhere from 10 weeks to 6 months, though you as the buyer could cancel any time prior to full approvals by the lenders/bank.
If you decide to write an offer on this type of listing, the following will be REQUIRED for your offer to be considered.
Pre-qualification letter: We can give you the names of lenders my clients have used and been very pleased with as well as their contact information. If you offer on a Countrywide bank sale, you will need to be pre-qualified with Countrywide, though you do not have to use them for your loan, their letter will be required.
Earnest Money: Short sales will accept a personal check in most cases, bank sale offers will require a Certified Check or Money Order, so you would need to bring your check book.
Verification of Cash Funds: copy of bank statements or letter from your financial institution on letterhead will be required to submit an offer for both bank sales and short sales.
If you have additional questions regarding Short Sales or would like to see available listings, please contact me directly.