An attorney experienced in completing short sales can help you navigate the details. Because short sales can take longer than regular home sales due to the need for lender approval, they often fall through. The buyer may find another property while waiting for an answer from you. Be prepared for this possibility.
What's the difference between a short sale agent and a lawyer?
The primary difference between lawyers and real estate agents when it comes to short sales is that a lawyer can not only negotiate the short sale, but also give you legal advice about the transaction. And, in many instances, the lawyer can represent you in a foreclosure action or help you file bankruptcy, if the short sale falls though. Real estate agents can't give legal advice or …
What is a short sale in real estate?
Nov 17, 2021 · Needless to say, that's why the listing expired and the short sale canceled. It's not a good idea to try to negotiate your own short sale, for a multitude of reasons. On the other hand, there are plenty of real estate agents running around who are calling themselves certified short sale specialists because they slept through a 3-hour class somewhere but have closed few, if …
Do you need a lawyer to sell a short sale in California?
In one type of fraud, the seller, who is in a hurry for the sale to go through, enlists the services of a person representing themselves as a “short services negotiator.”. This person claims they have the ability to promptly sell the property. The person will request a percentage of the purchase price as their “fee.”.
How do you convince a lender to agree to a short sale?
May 18, 2020 · A short sale means a homeowner sells their home for less than they owe on the property. For example, a homeowner might owe $100,000 on the house but need to sell it for $70,000. This is sometimes the only option for a homeowner because they:
What are the possible consequences of engaging in a short sale?
It also saves the lender the expense of foreclosing on a home where payments have stopped and the loan is in default. But a short sales results in a loss on the loan, and the end of interest payments and servicing charges that represented the lender's profit.
What happens if you can't pay a short sale?
If you're liable to pay the deficiency after a short sale, you can file bankruptcy to eliminate the debt. If you qualify, a Chapter 7 bankruptcy discharges the deficiency relieving you of the debt, while a Chapter 13 bankruptcy will usually require that you pay a portion of the total amount owed.
What is the downside of a short sale on a home?
Disadvantages of a Short Sale A short sale comes with quite a few catches. There are more parties involved than a typical sale making the process complicated and often lengthy. In a traditional home sale, price negotiations happen between the buyer and seller (or their representatives), not the seller's bank.Mar 16, 2021
How long does it take to settle a short sale?
A short sale can take up to six months to be approved because many factors can slow the process down. You might be able to reduce the time it takes to be approved by asking your agent for some information before making an offer.
Can you negotiate a short sale?
Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.
What happens after a short sale is approved by the bank?
After accepting an offer, the homeowner or his realtor must forward the offer to the lender for review. If the lender approves the offer, the short sale moves forward. If the lender does not accept the offer, the buyer may counteroffer or end the process.
Can a seller make money on a short sale?
Negatives of Short Sales to a Home Seller A short sale means they won't earn any profit from the sale of the house - the bank or mortgage lender gets all the sales proceeds.Jul 3, 2018
How can I speed up a short sale?
Speed up your short sale closing date by making your offer as free of contingencies as possible. Submit your mortgage approval with the offer. Contribute a substantial deposit to show your good intentions.
Do short sales have to be cash?
The short sale process is a lot like buying a home off the market. You'll start by finding a house and getting pre–approved for financing (unless you're paying in cash). Then you'll make an offer, negotiate the sale, and close.Jan 14, 2021
What happens if short seller can't cover GME?
Short sellers borrowed about 72 million GME shares and sold them in the market. As GME stock price rose, they suffered about $20 billion in losses. If those losses get big enough, they will be forced to buy shares, possibly pushing the price even higher.
How long can you hold a short position?
There is no mandated limit to how long a short position may be held. Short selling involves having a broker who is willing to loan stock with the understanding that they are going to be sold on the open market and replaced at a later date.
How do brokers make money on short selling?
Short sellers are wagering that the stock they are short selling will drop in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the short seller's profit.
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