Short Sale Questions & Answers: What is a Flower Mound Short Sale?
Flower Mound short sales involve many factors and parties but are successful when everyone understands what it is as well as the intricacies of the short sale process. The basic definition for this transaction is that a short sale occurs when a lender agrees to take less than what is owed on a mortgage at closing.Where the short sale is similar to a traditional real estate transaction is during the listing and selling processes. Once an offer is received, the borrower and the listing agent negotiate a contract with the buyer or buyer’s agent just as they would with a traditional listing.Once an offer has been accepted by the borrower, the listing agent submits the short sale package to the lender for evaluation. If the offer is accepted by the lender, the contract to close process begins and proceeds just as it would in a traditional sale.
What is the Criteria for a Short Sale?
To qualify for a short sale, the borrower must be experiencing a “true” hardship, must not have any significant assets they can use to pay off their mortgage, must be committed to staying the course and must meet lender requirements.
A hardship is defined as what has taken place in the life of the borrower that has caused them to not be able to make “good” on their mortgage. It is extremely important that the borrower be honest about their situation because it will be verified during the due diligence process and the short sale will be rejected if a true hardship does not exist. The borrower only has to be suffering from one hardship to be a candidate for a short sale. Here is a list of examples of real life hardships:
1. Lost job or significant reduction in income
2. Mortgage payments increased significantly
3. Severe illness
4. Property damage
5. Separation or Divorce
6. Insurmountable debt
7. Must sell due to military service
8. Mandatory relocation
9. Incarceration
10. Death in the family
Everywhere in the US, people are losing their homes in increasing numbers to floreclosre. Many have no help and no idea what is their best course of action but lenders, agents and homeowners are starting to learn that a short sale is often the best option for all parties involved in a foreclosure scenario.
You are up against the clock but an experienced short sale agent can often stop the wheels that are in motion and help you and your lender choose a better alternative, a Flower Mound short sale before time runs out.
Your future can improve with one phone call. Together we will discuss your options and sort out your best approach. We communicate with lenders, banks and buyers to negotiate the most likely successful end in a closed short sale.
Get someone who cares and knows what to do first and last to get your home sold and not foreclosed.
When a borrower takes out a mortgage loan, the lender acquires a lien or financial stake in the property. If the borrower takes out a second mortgage, as in the case of a home equity loan, that lender becomes a second or junior lien holder, with the first lien holder as the primary or senior. A third mortgage would create a third lien holder and so on. Freddie Mac must get 2nd lien and all other junior liens to agree to the short sale in order for it to be approved.Many listing brokers fail to make contact with the Junior Lien Holders upfront. This step is critical to the success of the transaction because all parties must agree to the short sale in order for it to be approved. As soon as the listing broker has made contact with the primary lien holder, he or she should immediately follow up with all junior lien holders. All junior lien holders will receive a copy of the short sale package submitted to the primary lien holder.
