Housing Lot Online » closing costs http://housinglotonline.com Foreclosure Process, Short Sales and Mortgage News Resource Mon, 17 May 2010 02:54:32 +0000 en hourly 1 http://wordpress.org/?v=abc Rules of Short Sales http://housinglotonline.com/rules-of-short-sales/ http://housinglotonline.com/rules-of-short-sales/#comments Tue, 14 Oct 2008 10:56:49 +0000 housing lot help http://housinglotonline.com/?p=394
  • The homeowner is delinquent on their mortgage payments, which is typically a minimum of 2 months
  • The homeowner must provide proof of financial hardship
  • The homeowner must not net any money from the sale of the home
  • The seller must find a qualified buyer for the home, who is willing to buy the home as-is.
  • The homeowner must submit all required paperwork to the lender to start the process.
  • It is difficult for the homeowner to complete the sale on their own, without a Realtor
  • The lender pays the Realtor’s fees and closing costs
  • The Short sale must net the bank more money than a foreclosure sale
  • The homeowner is not responsible to pay taxes on the amounts discounted by the lender
  • The bank cannot sue the homeowner for losses, assuming they are under the Homestead Exemption Statues.

    • The buyer must have approved funding to convince the bank that they are serious about the transaction.  They can still obtain an inspection, but the bank will not pay for any repairs.  This is why most offers on short sales are far below the value of the home.

    Short sales are a great solution to foreclosure and it’s important to hire a realtor who specializes in short sales and foreclosures to get your highest chance of getting it completed.

    ]]>     http://housinglotonline.com/rules-of-short-sales/feed/ 0     Short Sales in Minnesota http://housinglotonline.com/short-sales-in-minnesota/ http://housinglotonline.com/short-sales-in-minnesota/#comments Fri, 27 Jun 2008 03:25:38 +0000 housing lot help http://housinglotonline.com/?p=274
    There are a lot of misleading information on how short sales work and the seller’s role in the process.

    When a property is being sold, the seller is in control of the process (listed and marketed for sale). For a property to be sold as a short sale, the seller needs to be qualified by proving hardship that has been in result of or will be a result of missing payments. Lenders will require the seller to be 30 days behind payment. After 6 months of missed payment, most lender will sell the property as a foreclosure, in which afterwards the lender will not negotiate a short sale…so the seller needs to act quickly.

    When offers come in for the home, the seller will review all offers. All the offer terms will be reviewed with the seller and at this time, it’s up to the seller and the agent to decide on accepting, countering or rejecting the purchase agreement so that it meets your best interests.

    Usually the agent will try to obtain an offer within the first 30 days, so the agent will require that the seller has all of the documentation together that the lender will need to approve the short sale application.

    Once the offer and short sale application have been submitted the agent will work with the lender to negotiate the best short sale terms possible to eliminate the need for the seller to bring cash to closing or sign promissory notes. The lender will send a short sale approval letter and if the terms are acceptable, the seller will move forward closing the property.

    The seller will need to sign legal documents to transfer ownership of the short sale property and the title company will make arrangements for the closing agent to pre-sign all documents.

    Generally the closing costs and commissions will be paid out of the sale proceeds with lender approval.

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