Good evening BP members I wanted to discuss about a short sale in Elizabeth NJ I seen today. The property is listed for $250,000 and the property isn't in bad condition. I was wondering though how I'd be able to offer on a short sale. I hear the horror stories all the time but what if maybe I educate myself a little more on short sales and how I can help "speed" up the process. I've heard of pre-approved short sales, does that mean the property is approved for what it's listed for? Also does anyone recommend a link so I can self educate myself on this topic a little more. Thank you kindly!!
Hi Carlos. I'd suggest two things: (1) listen to episode 19 of the Bigger Pockets Podcast with Tracy Royce, she's a short sale professional/expert (I'll add a link below); and (2) find a real estate agent in your area that specializes in short sales.
I love the idea of you buying a short sale, I just think you'll need a professional to help lead you through the process. Good luck!
I have a short sale, I am agent... it's been 10 months.... and I had one that took 30 days!
it depends on the bank...
I showed one today, that has been 10 months, and the bank hasn't even said ok or no to offer. and last the agent heard from bank was 4 months ago ;(
How I explain short sale process is:
it' like getting engaged
you have proposed marriage to your fiance (seller). He/She said YES, now you are waiting on FIANCE PARENTS aka BANK to say YES or NO, and you have not control. And if they say YES, they set the wedding date LOL
You can't do anything to speed up the process,mother than providing proof of your ability to buy up front, and be responsive to counters once you get that point, and stay in touch with whoever is negotiating with the bank. Get a clear understanding of the situation from the seller's agent/negotiator before structuring your offer.
The person in charge of negotiations with the bank has the ability to get it done quickly if they know what they are doing. If the listing agent isn't experienced, you can ask to take over the negotiations with the bank. There are a few third party companies that can do the negotiations for you or you can have an experienced agent\lawyer help you out.
When submitting the short sale package to the bank, make sure you are submitting a complete package (which means all of the seller's documentation are up to date). Have your offer in the package with your proof of funds (banks like cash offers) and submit a preliminary HUD. A complete package will get to underwriting quicker! If you are really serious about the property, I would run a title search ASAP to make sure there are no hidden liens or judgements. If there are existing liens, you can inform the bank and try to get them to pay some if not all of them. These are some of the things an experienced agent can do to speed the process up and be proactive.
As others have mentioned though, it is ultimately up to the bank and how fast they want to work. Best of Luck and feel free to PM me if you have any questions.
yes, every bank is different, however, it's up to the realtors doing the shortsale, or urself if you are doing your own short sale to speed up the process. when you submit the offer, make sure you call them first to get to the right department with is the loss mitigation department thats where you need to fax the short sale package to and then find out who is the person incharge for that file/loan number . find out what they need and get it to them right away. once they get the short sale offer they will usually tell you it takes 30 days to hear from them. not true!. because once you have the loss mitigator imformation you can ask that person to speed up the process and put a rush on the file, and they will do it, collect the paperwork they need and submit it to the the investor to make a decision. you have to keep following up with them, i call them every few days to check the status of the file. otherwise , your file will get burried to the bottom of other files the shortsale mitigator.
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