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What is a short sale in Pennsylvania?
Short sales happen when the bank is willing to accept a payoff on their outstanding Note that is secured by a Mortgage for less money than is owed to the bank. You often hear the owner of the property say, I am upside down on this property.
How a short sale works?
A short sale is a transaction in which the seller does not actually own the stock that is being sold but borrows it from the broker-dealer through which they are placing the sell order. The seller then has the obligation to buy back the stock at some point in the future.
Why is short sale better than foreclosure?
A short sale transaction occurs when mortgage lenders allow the borrower to sell the house for less than the amount owed on the mortgage. This helps the home seller by allowing them to avoid foreclosure. Short sales are less damaging to a credit report than a foreclosure.
What is the process of a short sale?
With a short sale, there’s typically a certain process that both the bank and the seller go through. If you want to buy a short sale, try to write an offer that’s as close to the amount owed as possible. The process can be frustrating—agents may need to reassure the buyer and seller that patience is necessary.
What is included in a seller’s short sale package?
A seller’s short sale package will most likely consist of: A letter of authorization for your agent to speak with the bank. A preliminary closing statement. A completed financial statement or request for mortgage assistance (RMA). A hardship letter from the seller. Tax returns for the previous two years.
How do I submit a short sale to the bank?
The seller must prepare a financial package for submission to the short sale bank. Each bank has its own guidelines, but the procedure is similar from bank to bank. A seller’s short sale package will most likely consist of: A letter of authorization for your agent to speak with the bank. A preliminary closing statement.
How long does it take to get a short sale approved?
They become angry and annoyed because the short sale process is so lengthy and they think they can drop the whole thing without telling anyone, even their agents. Some short sales get approval in two to eight weeks. Others can take 90 to 120 days on average.