Will My Property Qualify?
Because of the changes in values, some have found themselves underwater on what they owe for their property vs what they could sell the home for. If you're in this boat, this can leave you in a difficult position if you have to move or if you have had a change in income etc. There are a lot of cases where the bank will agree to sell the home for less than you owe on the property.
There are a lot of moving parts to the short sale process and the qualifications differ with each lender. If you'd like to talk about your specific situation, my contact info is above. I'm happy to go more in depth. For now, here's a general description of how a short sale works.
1. Receiving Offers
A short sale property is listed in the MLS like any other property with the proper disclosures and addendums. Once an offer is received, it's reviewed by the listing agent and the owner to determine if it's acceptable to present to the lender for approval.
2. Lender Review
The lender will also complete a review of the seller's financial status to determine if they will approve the seller for a short sale. Again, there are many factors that go into a banks decision in this part of the process as well. They're going to look at your income debt, payment history, potential financial hardships in the future, etc. In the end, they may decide a refinance is your best option.
3. Bank Review
Once an offer has been accepted by the current owner, the bank will do their own independent review of the property itself and determine the value of the property according to their review. Depending on the offer, they may counter the buyers offer price or they may accept that the offer is at market value. It's rare that a bank will accept anything less than market value. There are some situations where they will compromise, but it's a case by case situation.