The term ‘short sale’ has definitely gained popularity with the Alexandria VA real estate market over the past year. While a short sale may not be suited for every homeowner, here are some basics to let you know how we help those who may be a candidate for a short sale.
The factors necessary in order to move forward with the short sale process:
- The homeowner may be behind on payments. You don’t have to be behind on mortgage payments to qualify for a short sale. Every bank, and every situation is different.
- There is little or no equity in the house, or homeowner owes considerably more than what the house is worth.
- The homeowner can prove a legitimate hardship.
Once the homeowner is aware of all options with the current mortgage company and if the owner chooses to proceed with a short sale, then we prepare the ‘Short Sale Package’ and submit it to the lender.
The short sale process for FHA loans if different than the process for VA and conventional loans. With FHA loans, the homeowner must have written acceptance into the HUD short sale program prior to listing the home. With conventional mortgages, the seller can proceed to market the home in the MLS and receive offers. Based on the total amount owed on the home (which could include late payments, taxes, HOA/condo fees, mechanics liens), and a market analysis, we help determine the asking price for the home.
The mortgage company may not explicitly offer a bottom line figure for what will be acceptable, so the market analysis proves to demonstrate what buyers are currently paying for similar homes. This information is also included in the prepared short sale package to help strengthen the owner’s case for the approval.
The average time for a home to successfully close with a short sale is 60-90 days. The benefits to the homeowner include the relief of no longer carrying a mortgage that is not affordable, and still being able to purchase a home.
As with a seller-owned resale home, the home is aggressively marketed both online and in print publications to secure a buyer. As with all transactions, all financial information is kept in confidence, so you will never see our listings blatantly advertised as short sales.