How can you make the bank approve your Weston Short Sale?

How can you make the bank approve your Weston Short Sale?

This is the ultimate question that Weston short sale sellers have been seeking answers for, especially because of the high number of short sales that the banks are rejecting.

When the banks receive a short sale proposal or what is called a “short sale package”, their goal is to ensure that their losses will be minimal. They’ll do the math to see if they stand to lose more in a foreclosure than in a short sale, then they will come to a decision whether or not to approve or reject the short sale.

There are instances wherein a lender determines that they’d suffer less loss by foreclosing on the home and selling it through an auction versus doing a short sale.

Here are concrete steps you can take to make the bank approve your Weston short sale:

1. Follow their instructions and requests. If the bank needs you to send additional documents, make sure that you comply. There’s no use with trying to raise arguments with the bank during the process because ultimately, it is their approval that you need for the short sale property that you’re selling.
2. Submit documents right away. Ensure that you sign and submit all documents to your Weston short sale agent without any delays. Banks often revise forms such as the short sale contract addendum and the arms length affidavit. Coordinate with your Weston short sale agent to make sure that all the forms used are updated. This is important to do especially before the short sale is set to close. Outdated forms in the short sale package can cause unnecessary delays.
3. Make sure documents are complete before submitting them. The lender needs that each page of your short sale package is complete so that they can perform a thorough evaluation. Before submitting documents, double check that all items are complete. Don’t submit shortened versions of any documents. Sending an incomplete short sale package and requirements will not only cause your short sale to be delayed, it may even halt the process altogether. Make sure that you also indicate your loan number on each page of the short sale package.
4. The HUD must also state the seller’s and the buyer’s names. There are cases when the bank will ask for the names of the junior lien holders to be stated on the HUD. Also, your Weston short sale agent has to ensure that the buyer’s side of the HUD is correct and complete if the HUD includes credits from the seller to the buyer.
5. Include a Comparative Market Analysis (CMA). The CMA, which your Weston short sale agent has to prepare, will show the lender the proposed price of your home as justified by its current market value.
6. Submit your buyer’s offer with supporting documents. To assure the bank that your buyer is serious and is capable of purchasing the home, include copies of of the buyer’s pre-approval letter from his lender, his earnest money deposit, and also his bank statement.

By following these 6 steps, you immediately increase the odds of your Weston short sale getting approved by the bank ten-fold.

Call Nestor Gasset or Katerina Gasset at 561-753-0135 today and get you Weston short sale questions answered!

The Top 3 Port St. Lucie Short Sale Myths Debunked

The Top 3 Port St. Lucie Short Sale Myths Debunked

If you're contemplating on doing a Port St. Lucie short sale, but you're not entirely sure if it's your best option, you need to find out if these short sale myths might be holding you back from making an informed decision.

Is doing a short sale going to do more harm than good, or is it the only means that can help you avoid foreclosure? Read on to find out as we debunk the top 3 Port St. Lucie short sale myths.

1. Before the bank approves a short sale, the seller must be in default.
   Sellers in default will immediately catch the lenders' attention, but it's definitely not a requirement to be eligible for a short sale. As long as a seller submits a hardship letter, he or she can continue paying the monthly mortgage and still qualify for a short sale. There are situations that sellers, though they struggle with making the monthly mortgage payments, don't really fall behind.
2. Banks will never accept a discounted payoff.
   You might be thinking, "Well, my home is now only worth roughly 50% of the price back when I bought it. The bank will never approve a short sale for that price." But the fact is, banks research the current value of your home and perform their own appraisal. The price acceptable for your home is not based on the mortgage price but instead, it's based on the selling price of comparable homes that has been recently sold in your area. This means that banks will accept the current value of short sale homes and not their mortgage value.
3. A short sale can be done in a short period of time.
   The short sale process is one that is complex, much more so in comparison to traditional sales. Closing a short sale can take several weeks, and even months. The timeframe depends on several factors such as the short sale lender, how smooth the negotiation process will go, the ownership of the home, and the completion of required documents, among others.

Regarding the ownership of the home, the servicing bank might not be the lien holder. In this scenario, the investor's guidelines should be the one that must be followed. Since banks each have their own guidelines that they apply in the short sale process, this could be one particular cause of delay, most especially if there is more than one lien holder.

After debunking these Port St. Lucie short sale myths, we hope that we've enlightened you whether or not doing a short sale is your best option. If there are still some things that concern you when it comes to the short sale process, contact an experienced short sale agent in your area.

Call Nestor Gasset or Katerina Gasset at 561-753-0135 today and get your Port St. Lucie short sale questions answered!