With the Mortgage Debt Relief Act expiring on 12/31/2012 there is no time to spare if you need to short sale your property. Short Sales represent 14% of the home sales. The time it takes to get approval varies but there are only 6 months left to process this type of sale. Starting on 6/15/2012, the Federal Housing Finance Agency which regulates Fannie Mae and Freddie Mac is requiring both agencies to give Short Sale buyers a final decision within 60 days. Freddie and Fannie must also respond to the initial request of a Short Sale within 30 days of the offer submission. This will reduce the long wait that sometimes results in buyers getting disinterested. There is such a shortage of homes in the Las Vegas area that most properties have multiple offers. Offering a home for short sale is a process and having a team that understands how to navigate the process is invaluable. Let us help you get your home on the market, help you with all the documents you’ll need to support the short sale and transition to the next step.
With approximately 60% of all homes currently on the market are short sales. One advantage to both the bank and the seller is that unlike bank-owned a short sale property is less likely to be vandalized as the owner is still living in the home. By contrast, homeowners who lose their properties to foreclosure don’t leave the property in the same condition as those in a short sale. Even though the short sale process can take longer than a traditional sale or bank owned property, since a large portion of homes are short sale, you don’t want to exclude these properties in your looking process.
To initiate a short sale, you’ll need your original offer and a pre-qualification letter from a lender. If paying cash you’ll need to proof of funds. You will also need an earnest money deposit. Once the offer has been accepted by the seller, the earnest money will be deposited at the title company to be held until closing or if the offer is terminated. The listing agent then sends this into the bank.
Unlike a traditional sale, there is a short sale addendum that specifies the terms of a short sale and the amount of time the buyer agrees to waiting for the process to be approved and accepted by the bank, anywhere from 45-90 days.
The amount of costs the bank will pay in a short sale vary by bank. They usually will not pay for appraisals or a home warranty or any repairs. Typically you can get up to 3% of the purchase price to use towards closing costs. The bank will pay Realtor commissions and other fees such as title insurance, prorated taxes and HOA fees.
Once approved the period of due dilligence begins where you have 7-10 days for inspections and not less than 5 days to inspect the HOA documents once received. Most banks give you 30 days from approval to be fully closed. In some instances such as FHA or VA you have 45 days.
Team Las Vegas Real Estate is committed to following the short sale process with you every step of the way to ensure all parties are updated and all documents and inspections are handled in a timely manner to ensure a successful close of escrow.
We are continually seeking out better and more efficient ways to handle an ever changing process of the short sale.