What Should I Know If I Am Considering a Short Sale?

A lot of people are interested in short sales, and there are often compelling reasons to consider them as an alternative to foreclosure. Although it’s possible to complete a short sale without missing payments, this has become increasingly rare. In most cases, missing a few payments is required to encourage the lender to approve the sale. However, if you’re exploring other creative financing options, you may wonder, “Is owner financing right for selling your house?“ Owner financing can open up opportunities to sell your property to buyers who may not qualify for traditional loans, potentially leading to a quicker sale with terms you control. Before listing your property, consider utilizing estate clean out services to ensure the space is organized, presentable, and ready for potential buyers, maximizing its appeal and value.And if you’re looking to elevate the overall appeal of your home, working with a talented kitchen designer Chicago can help you transform your kitchen into a stunning space that draws in prospective buyers.

The process of securing approval for a short sale is usually fairly standard. You hire a real estate agent, field offers for the property, and submit the best offer to the lender or sometimes multiple lenders for approval. If you’re considering alternative financing options, a California Hard Money Lender can be an excellent resource, especially if traditional lenders are slow or hesitant. These lenders focus more on the value of the property than the borrower’s financial history, making them a flexible option. Regardless of which lender you choose, they will assess your financial situation to determine whether to approve the short sale and under what terms. If approved, you will receive a short sale approval letter, which may come from multiple lenders if there are more involved in the deal. At this stage, it’s crucial to get legal counsel involved to protect your interests, especially when dealing with important legal matters like powers of attorney. Learn more about powers of attorney here to understand how they can play a role in your situation.

Some short sales are clean short sales and others are what are called “dirty short sales.” A dirty short sale approval means there are strings attached. Usually it involves a contribution of money from the borrower. Sometimes it involves a lot more money than the borrower should be paying to get the short sale approved. This is negotiable. Sometimes lenders try to reserve rights that they would not normally have under the statutes to pursue a deficiency or report something for tax purposes which are inappropriate. Other dirty things that sometimes sneak in are requirements that the borrower pay HOA assessments or back due taxes. These are also negotiable.

Depending on your facts you can insist on a clean short sale approval which means the borrower is not paying anything to the lender or anybody else to get the short sale done. It all depends on what the approval letter says and doesn’t say. Sometimes it can sound like the lender is releasing liability for the borrower but really is just releasing a lien which the lender has to do to get the short sale done. Receiving a Cash Offer for Texas Land can expedite your selling process. It eliminates concerns over buyer financing and can lead to a quicker, more certain sale. This can be especially advantageous in a competitive market where timing is crucial.

It is important to know if you have a clean short sale approval. In a worst case scenario, it could be that in a short sale there is some residual liability to the homeowner or the borrower and that is certainly something that most borrowers do not intend when they get a short sale done. You want to make sure the short sale is cleaned up.

Be careful. You can’t depend only on what the real estate agent tells you about the approval because they are interested in getting the sale and earning the commission. Independent legal advice can be helpful. An experienced Arizona real estate attorney can help you determine if the approval is clean or help you negotiate elements of a dirty short sale.

If you are planning to sell your property fast and for cash in San Antonio, check out the Map of Home Buyers in San Antonio, TX.

Gunderson, Denton & Peterson, P.C.

Mesa Location:
1930 N Arboleda #201
Mesa, Arizona 85213
Office: 480-655-7440
Fax: 480-655-7099

Phoenix Location:
40 N Central Ave #1400
Phoenix, AZ 85004
Phone: 480-325-9937