A lot of Realtors, buyers, and sellers stay away or cringe around the topic of short sales. However short sales are becoming more prevalent as home prices continue to decline. In Kansas City, there are a several opportunities for buyers and sellers to utilize short sales to help get a property sold.
A short sale is when a home is sold, not there is not enough money to pay all the liens and expenses associated with the sale.
In order for a short sale to work, all parties involved need to benefit. Seller, Buyer, and Lender
Here are some qualifications for a successful short sale:
1. Decrease in market value
2. Mortgage in default
3. Seller does not have the ability to pay or continue to pay mortgage payment
4. Lender will save money/time by approving the short sale over a foreclosure
5. Buyer has patience to get deal done
Documentation typically needed to submit file:
1. Sales contract showing property to be sold "as is" with quick close after approval
2. Listing agreement showing a reduced commission
3. Hardship letter explaining job loss, divorce, medical bills, death, or other fin. issue
4. Preliminary HUD-1
5. Seller tax returns
6. Buyer pre-qualification/proof of funds
7. Bank statements
Keep in mind that the bank has several files "on their desks" You need to be patient, but continue to be persistent to get an answer from the bank. Short sales are a great way to continue to move properties in a down market.
For more information about short sales in the Kansas City, Missouri market, feel free to call or email me at either 816-728-0214 or Nate@AmicGroup.net.
Wednesday, February 4, 2009
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