Northwest Arkansas Foreclosure Resources
Pre-Foreclosures (Short Sales)
What is a Short Sale
A short sale is a sale of real estate for which the funds fall "short" of paying off all of the liens or mortgages on the property. In a short sale, the bank agrees to discount the balance due on the note for the seller. The seller is allowed to sell their home for less then the balance owed on the note. This is done in situations where the seller has endured an economic or financial hardship. Some examples are: loss of employment, divorce, illness in the family, or other circumstances that might cause an unforeseen hardship.
Who Wins In A Short Sale
All parties involved have something to gain in a short sale transaction. The average cost of foreclosure in the United States is $55,000 per foreclosure. The lender obviously has something to gain if they can avoid the expensive foreclosure process. The seller avoids foreclosure and all the negatives that come with it. The buyer can often times get a great deal on the property (if properly negotiated). The rule of thumb is short sales will sell at about 80% of market value.
What Do I Do As a Seller
There are several things you can do as a seller. There is a list of items that the lender will require:
1. Hardship Letter
2. Financial Worksheet (income and spending on a monthly basis)
3. Listing Agreement
4. Copies of 2 years tax returns
5. Copies of 30 days pay stubs
6. Authorization Letter for your agent
7. Other information based on loan type and lender
Do I Need a Real Estate Agent
Absolutely NOT! However there is no cost for using an agent as the buyer or as the seller. All costs are paid by the Lender. Unlike most Real Estate transactions that are simple and can be handled by almost anyone it is very important to work with someone experienced in short sale transactions. Many pitfalls can be avoided simply by knowing all the ins and out of the process.
What Is The Process
Once all the information is gathered by the seller it is submitted to the lender for approval. Each lender has their own process but one thing is for sure none of them are quick! Short sales can take up 90 days to complete and often up to 30 days before a potential buyer hears any response at all. The key to this transaction is patience. There are many great deals at the other end for those who can endure the waiting.
Foreclosures, Northwest Arkansas, Arkansas, Bentonville, Rogers, Bentonville, Bella Vista, Rogers, Northwest Arkansas, Foreclosures, Foreclosure
Foreclosures, Northwest Arkansas, Arkansas, Bentonville, Rogers, Bentonville, Bella Vista, Rogers, Northwest Arkansas, Foreclosures, Foreclosuret
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