Selling a home for less than what is owed is becoming the new normal as homeowners facing financial difficulties or that must sell due to relocation are pursuing short sales in order to get the property sold in a down market. Home buyers should take a fresh look at short sales currently listed for sale as banks continue to ramp up programs to provide more timely response to short sales in 2011.
With home price declines in double digits in many neighborhoods in the Pee Dee and along the Grand Strand sellers should consider a short sale when options are limited and to avoid foreclosure. Forclosure proceedings will not be stopped while properties are listed for sale but working with your lender to complete a short sale is a viable option and part of loss mitigation efforts.
Sellers must provide documents to lenders in a timely manner and more REALTORS® have special training to assist both buyers and sellers through the short sale process. While the paperwork can be overwhelming having your own agent work with you in the process that has experience and training makes the it less stressful for both buyers and sellers.
Short sale homes are most often occupied by homeowners that can give you disclosures about the property. Unlike REO sellers that have no knowledge about the home a short seller can provide you with information on the property and are willing participants in the process.
Buying a short sale in 2011 will be much easier than years past horror stories because lenders and homeowners have reasons to work together and new requirements exist for lender approval. When I completed my first short sale in 2007 the term wasn’t used and the seller and lender woked to make it happen without delay. Timely answers are the new norm with many lenders working with homeowners on approvals prior to having any written offers on the property.
Short sales can be a good option for buyers and sellers and with improved services and training of lenders and real estate agents short sales in 2011 will and should see much improvement in both communications and approvals from all parties in the transaction.
Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.