| There are many factors that affect the amount of | | | | - Hiring people who don't know what they are |
| time required to complete a short sale. The number | | | | doing. Banks routinely give priority to short sale |
| of mortgages tied to a property is one major | | | | applications that have the best odds of closing and |
| factor. For example, it normally takes longer to | | | | discard applications when they are presented |
| negotiate with two or more lenders than it does to | | | | improperly or by someone who clearly has no prior |
| negotiate with just one. The process also tends to | | | | experience. |
| take longer when a loan has private mortgage | | | | - Loan transfers. Lenders often transfer mortgage |
| insurance (PMI). Nevertheless, homeowners have | | | | loans to other banks. These loan transfers will |
| considerable control over both the result and the | | | | normally delay the short sale process. By staying on |
| duration of a short sale. Success in all cases requires | | | | top of your lender by calling or writing to them |
| the assistance and participation of the homeowner | | | | frequently, you can help to minimize the delays |
| throughout the process from start to finish. The | | | | associated with a loan transfer. |
| actions of the homeowner more than any other | | | | |
| factor determines success or failure as well as the | | | | Actions That Accelerate a Short Sale: |
| time required to complete a short sale. | | | | - Gathering all bank-required documents quickly. |
| Contrary to popular belief, the bank's decision is not | | | | - Giving realtors, interested buyers, appraisers and |
| exclusively based on the sale price. Banks review | | | | home inspectors access to your property (These |
| and evaluate short sale applications based on a host | | | | people need to get into your property in order to |
| of criteria including the value of the property, the | | | | complete and close the short sale transaction). |
| type and terms of the homeowner's loan, the | | | | - Continuing to pay all other property-related |
| homeowner's financial condition as well as the terms | | | | expenses not included in your mortgage payment (i.e. |
| of the buyer's loan. The amount of time any lender | | | | HOA or condo maintenance fees, utility bills etc.) |
| will spend to review a short sale application is not | | | | When these expenses go unpaid, they often become |
| consistently predictable. In addition, the buyer and | | | | liens against your property making it more difficult to |
| the buyer's lender play an unpredictable yet decisive | | | | close the short sale transaction. |
| role in the process. To complicate things further, | | | | - Terminating or not renewing rental leases with |
| lender guidelines vary from bank to bank and | | | | tenants. A vacant property is normally easier to sell |
| foreclosure laws differ from place to place. | | | | than one with tenants. In addition, when your |
| Although these various elements make it impractical | | | | tenants move out, the loss of rental income will help |
| to accurately estimate the overall time frame, there | | | | convince your lender that your financial hardship is |
| are concrete steps you can take to significantly | | | | valid. |
| shorten the time required to complete a short sale. | | | | Your bank is not in the real estate business and does |
| The following actions affect the duration of the | | | | not want to own your property. However, you |
| process: | | | | originally applied to get a mortgage and you must |
| | | | | also apply to get out of one--the process requires |
| Actions That Delay a Short Sale: | | | | you to submit documentation just like you did when |
| - Submitting incomplete homeowner paperwork or | | | | you bought the property. Failure to comply with |
| not providing required documentation timely. When | | | | your lender's guidelines is a recipe for prolonging the |
| facing foreclosure, time is not on your side—any | | | | process or getting your short sale application |
| delay reduces your chances. | | | | rejected. The best way to speed your path to the |
| - Overpricing the property. A property is worth | | | | finish line is to fulfill all document requirements quickly |
| what a buyer is willing to pay for it. You must put | | | | and completely, price your property competitively, |
| your property on the market at a price that will | | | | work with experienced people and cooperate with |
| attract buyers--no buyer, no short sale! | | | | everyone involved in the transaction. |
